Which of the following is NOT a characteristic of a bilateral contract?

In a bilateral contract, both parties are involved and have mutual obligations, meaning that each party makes a promise to the other. This is a foundational characteristic of such contracts, as both sides are bound to perform their respective duties as stipulated in the agreement.

The exchange of promises is another critical aspect of bilateral contracts, as it highlights that each party's promise serves as consideration for the other's promise. This mutual exchange is what differentiates bilateral contracts from unilateral contracts, where only one party is obligated to perform.

While a written agreement may provide clarity and serve as proof of the arrangements, a bilateral contract does not necessarily require a written form to be enforceable; it can also be formed verbally or implied through actions. Therefore, the absence of this requirement does not define whether a contract is bilateral.

The option indicating that only one party is bound fundamentally contradicts the nature of a bilateral contract. By definition, both parties are bound to their promises upon the formation of the agreement. Thus, identifying that only one party is bound stands out as not a characteristic of a bilateral contract.