Unilateral Contract

Definition: A unilateral contract involves a promise offered in exchange for performance of an act, rather than a return promise to perform.

Example

A property owner offers a stated reward for the return of lost keys. The requested act, rather than a promise to search, earns the reward under the offer.

Keep the distinction clear

In real estate exam study, an option is often classified as unilateral before exercise because the holder has a purchase choice. Still distinguish the option agreement’s own payment and notice requirements.

Related terms

Bilateral Contract · Option Contract · Consideration

Keep studying

Option Contracts: Who Is Bound, Consideration, and Exercising the Option

References: Cornell LII: unilateral contract · Cornell LII: option

Pronunciation (US): yoo-nih-LAT-er-uhl KON-trakt (capitals show stress)

Pronunciation reference: Merriam-Webster