What is a unilateral contract?

A unilateral contract is a contract in which only one party, the offeror, makes a promise or commitment. This type of contract differs from a bilateral contract, which requires both parties to make a promise or commitment to one another. In California, unilateral contracts are legally binding documents. However, they are not as extensive in scope as those of a bilateral contract, which requires both parties to make promises in order to be binding. This may limit the recourse a party may take if the other party fails to adhere to the terms of the contract. In a unilateral contract, the offeror must prove that the other party accepted the offer. For example, if a contractor offers to build a house for $50,000, they must prove that the homeowner accepted the offer in order to hold them to the agreement. This may entail showing payment, a signature, or some other type of proof of acceptance. In California, unilateral contracts are valid and enforceable. The offeror is held to the terms of their offer, and the other party must prove acceptance in order for the contract to be legally binding. It is important for anyone engaging in a unilateral contract to understand all of the potential implications to ensure that their rights are upheld.

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