What is a unilateral contract?

A unilateral contract is an agreement between two parties in which only one party makes a promise. The other party does not make any promises in exchange for the promise made by the first party. This type of contract is commonly used in Kentucky when there is something of value being exchanged, such as goods or services. For a unilateral contract to be formed in Kentucky, the offeror (the party making the promise) must have a genuine intention to be bound by the agreement. In addition, the offer must be specific, unconditional, and irrevocable. That means that the promise made by the offeror must be clearly defined and the offeror cannot change or revoke the offer once it has been made. The other party to the unilateral contract must perform or accept the offer in order to make the agreement binding. This means that once the offer is accepted, the party that made the promise must fulfill their obligations. Since only one party is making a promise in a unilateral agreement, that party is legally obligated to perform or provide the promised item or service once the other party accepts the offer. Unilateral contracts are generally used when one party is providing something in exchange for an unknown or potentially unknown benefit from the other party. For example, if a person in Kentucky agrees to pay someone for services rendered without knowing what those services are, then a unilateral contract has been created.

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