Definition Of The Unilateral Contract

A unilateral contract is a contract where only one part holds responsibility for whatever the document promises.

Definition of the unilateral contract. A reward offered for providing certain information is an example of a unilateral contract. An insurance contract is a unilateral contract because the insurer promises coverage to the insured when the former recognizes the latter as an official policyholder. A contract in which only one party makes an express promise or undertakes a performance without first securing a reciprocal agreement from the other party. A formal agreement in which only one of the people or groups involved agrees to do something.

In a unilateral or one sided contract one party known as the offeror makes a promise in exchange for an act or abstention from acting by another party known as the offeree. For instance an insurance contract is usually a unilateral contract because only the insurer has made a promise of future performance and only the insurer can be charged with breach of contract. The other party doesn t have the same legal restrictions under the contract. A unilateral contract is a contract agreement in which an offeror promises to pay after the occurrence of a specified act.

In general unilateral contracts are most often used when an offeror has. Another example of a unilateral contract is a reward or a contest. Contract arising where one party the promisor makes an offer to pay another party the promisee in return for the performance of an act and the promisee gives his or her assent by performing the said act. Unilateral contract refers to a promise of one party to another that is legally binding.