What is a unilateral contract?

A unilateral contract is a type of contract found in Texas’s contract law. It is one-sided, meaning that only one party is obligated to fulfill their part of the deal. The other party is not legally bound to perform any action or provide anything of value. Unilateral contracts are often used in situations such as employment agreements. In a unilateral contract, one party makes an offer and the other party is free to accept or reject the offer. The offerer’s obligation is only triggered when the other party takes a specific action. This action is called ‘acceptance’ and it usually involves payment of money, delivery of goods, or performance of a service. For example, a business might offer a reward for the return of a stolen item. The business has no legal obligation to pay the reward until someone actually returns the stolen item. Unilateral contracts are legally enforceable in Texas courts. This means that if one of the parties fails to meet its obligations, the other party may pursue legal remedies. It is important for anyone entering into a unilateral contract to understand the terms and conditions of the agreement before exchanging any money, goods, or services.Failure to do so may result in costly litigation.

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What is a unilateral contract?

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