https://www.ietf.org/rfc/rfc2131.txt
As per this RFC:
Droms Standards Track [Page 24]
RFC 2131 Dynamic Host Configuration Protocol March 1997
Normally, DHCP servers and BOOTP relay agents attempt to deliver
DHCPOFFER, DHCPACK and DHCPNAK messages directly to the client using
uicast delivery. The IP destination address (in the IP header) is
set to the DHCP 'yiaddr' address and the link-layer destination
address is set to the DHCP 'chaddr' address. Unfortunately, some
client implementations are unable to receive such unicast IP
datagrams until the implementation has been configured with a valid
IP address (leading to a deadlock in which the client's IP address
cannot be delivered until the client has been configured with an IP
address).
A client that cannot receive unicast IP datagrams until its protocol
software has been configured with an IP address SHOULD set the
BROADCAST bit in the 'flags' field to 1 in any DHCPDISCOVER or
DHCPREQUEST messages that client sends. The BROADCAST bit will
provide a hint to the DHCP server and BOOTP relay agent to broadcast
any messages to the client on the client's subnet. A client that can
receive unicast IP datagrams before its protocol software has been
configured SHOULD clear the BROADCAST bit to 0. The BOOTP
clarifications document discusses the ramifications of the use of the
BROADCAST bit [21].
A server or relay agent sending or relaying a DHCP message directly
to a DHCP client (i.e., not to a relay agent specified in the
'giaddr' field) SHOULD examine the BROADCAST bit in the 'flags'
field. If this bit is set to 1, the DHCP message SHOULD be sent as
an IP broadcast using an IP broadcast address (preferably 0xffffffff)
as the IP destination address and the link-layer broadcast address as
the link-layer destination address. If the BROADCAST bit is cleared
to 0, the message SHOULD be sent as an IP unicast to the IP address
specified in the 'yiaddr' field and the link-layer address specified
in the 'chaddr' field. If unicasting is not possible, the message
MAY be sent as an IP broadcast using an IP broadcast address
(preferably 0xffffffff) as the IP destination address and the link-
layer broadcast address as the link-layer destination address.