Unilateral Contract

Also found in: Dictionary, Thesaurus, Financial, Wikipedia.
Related to Unilateral Contract: conditional contract, aleatory contract, Express contract

Unilateral Contract

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.

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. If the offeree acts on the offeror's promise, the offeror is legally obligated to fulfill the contract, but an offeree cannot be forced to act (or not act), because no return promise has been made to the offeror. After an offeree has performed, only one enforceable promise exists, that of the offeror.

A unilateral contract differs from a Bilateral Contract, in which the parties exchange mutual promises. Bilateral contracts are commonly used in business transactions; a sale of goods is a type of bilateral contract.

Reward offers are usually unilateral contracts. The offeror (the party offering the reward) cannot impel anyone to fulfill the reward offer. An offeree can sue for breach of contract, however, if the offeror does not provide the reward after the offeree has fulfilled the contract's requirements.

unilateral contract

n. an agreement to pay in exchange for performance, if the potential performer chooses to act. A "unilateral" contract is distinguished from a "bilateral" contract, which is an exchange of one promise for another. Example of a unilateral contract: "I will pay you $1,000 if you bring my car from Cleveland to San Francisco." Bringing the car is acceptance. The difference is normally only of academic interest. (See: contract, bilateral contract, performance, consideration)

UNILATERAL CONTRACT, civil law. When the party to whom an engagement is made, makes no express agreement on his part, the contract is called unilateral, even in cases where the law attaches certain obligations to his acceptance. Civ. Code of Lo. art. 1758. Code Nap. 1103. A loan of money, and a loan for use, are of this kind. Poth. Obl. part 1, c. 1, s. 1, art. 2; Lee. Elemen. Sec. 781.

References in periodicals archive ?
An effective restructuring mechanism does not need to create unilateral contract modification options for municipal or state officials.
46) After finding UPGO made an offer for a unilateral contract, the court consequently determined UPGO's intent.
Doubtless wherever possible, as a matter of interpretation, a court would and should interpret an offer as contemplating a bilateral rather than a unilateral contract, since in a bilateral contract both parties are protected from a period prior to the beginning of performance on either side--that is from the making of the mutual promises.
a) in a unilateral contract, actually gives up something to which he has a legal right or actually refrains from doing something that he has a legal right to do
1988) (finding an employer's unilateral modification of a handbook provision valid after applying unilateral contracts analysis and noting "[t]he employee's retention of employment constitutes acceptance of the offer of a unilateral contract").
Thus, the court found that the customer had entered into a unilateral contract with Giant Eagle, and the liability attached upon the customer's performance (i.
The rationale behind this direction may lie understandably in the unilateral contract nature of products, requiring policies to have in-force shelf lives considerably longer than the competitive shelf lives of the underlying products.
Updates and consolidates text on the use of imprest funds and third-party drafts; deletes unnecessary cross-references; and relocates to PGI, guidance on the use of unilateral contract modifications and procedures for use of forms for purchases made using simplified acquisition procedures.
Avoiding unjust enrichment of one of the parties due to unilateral contract modification;
If the paying office on a contract is being closed, generally there will be a unilateral contract amendment that changes the paying office to the new location and the related paying office DOD Activity Address Code (DODAAC).

Full browser ?