What is a unilateral contract?

A unilateral contract is a legal agreement between two parties in which only one side is bound to fulfill its terms. In a unilateral contract, only one party makes a promise and the other party accepts the promise without providing a return promise. This type of contract is often used in Mississippi law. A common example of a unilateral contract is an offer of a reward. If an individual posts an advertisement that they are willing to reward someone who finds a lost item, the contract is unilateral because only one party (the individual who posted the reward) is legally obligated to pay the other party if the lost item is found. In other words, the person who finds the lost item is not obligated to fulfill any promise in order for the reward to be paid. Unilateral contracts can also be used when one party’s performance is not determinable until after the other party has completed their performance, like in construction contracts. In this situation, the contractor is obligated to fulfill their part of the contract, while the other party is not required to do anything until the contract is complete.

Related FAQs

What is the effect of a breach of contract?
What is the mirror-image rule?
What is a performance bond?
What is frustration of purpose?
What is the effect of a modification of a contract?
What is a contract of sale?
What is a third-party beneficiary?
What is the implied covenant of quiet enjoyment?
What is a merger clause?
What is a breach of the implied covenant of good faith?

What is a unilateral contract?

Related FAQs

Related Blog Posts