What is a unilateral contract?
Learn what the term unilateral contract means with this easy, go-to guide to deciphering and defining specific contract terminology.
Whether or not you’ve actually created contracts before, you probably already know how important they are when it comes to taking care of business. But with confusing terminology and the sheer number of different types, finding the best contract for you can be tough.
That’s why we’re diving into a quick explanation of a common type of agreement — unilateral contracts. Read on to learn more about what they are, why they matter, and the top three things you need to know about them.
What is a unilateral contract, anyway?
A unilateral contract — unlike the more common bilateral contract — is a type of agreement where one party (sometimes called the offeror) makes an offer to a person, organization, or the general public. In order for the offeree to receive whatever the offeror promises, they need to perform the act or service that was requested in the agreement.
A bilateral contract contains set agreements and promises between two parties whereas, in a unilateral contract, there are no promises between parties. Instead, the offeror requires that the offeree perform an act, meet a request, or provide a service.
What you should know about unilateral contracts.
- Unilateral contracts are just as binding as bilateral contracts, but only one party is making a promise
- The only way to accept a unilateral contract is through the completion of a task
- An offeree has no obligation to perform the act in the unilateral agreement
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