what is a unilateral contract 
a unilateral contract is a one sided contract agreement in which an offeror promises to pay only after the completion of a task by the offeree in this type of agreement the offeror is the only party with a contractual obligation a unilateral contract differs from a bilateral contract in which both parties are bound by the agreement understanding unilateral contractsunilateral contracts occur when the offeror makes an offer to another party this type of contract requires the offeree to perform an act that the offeror requests the offeree has no obligation to complete the task and the offeror will only pay if the request is completed unilateral contracts are considered enforceable by contract law however legal action is not commonly pursued unless the offeree claims to be eligible for remuneration tied to the request contract breach depends on whether or not the terms of the contract were clear and if it can be proven that the offeree is eligible for payment of specified acts based on the unilateral contract s provisions types of unilateral contractsunilateral contracts are primarily one sided without obligation from the offeree open requests and insurance policies are two of the most common types of unilateral contracts offerors may use unilateral contracts to make a broad or optional request and payment is made only when certain specifications are met if an offeree completes the task the offeror is required to pay rewards are a common type of unilateral contract request where information received may lead to a criminal s conviction that will warrant a payment funds can be paid to a single individual or several individuals offering information that serves this specific purpose a unilateral contract is commonly used with a request for labor an individual may offer to pay someone to clean their house or walk their dog and the offeree is paid only when the task is completed insurance policies have unilateral contract characteristics since the insurer promises to pay if certain acts occur under the terms of a contract s coverage in an insurance contract the offeree pays a premium specified by the insurer to maintain the plan and receive coverage if a specific event occurs the 4 elements of a unilateral contractto make a unilateral contract legally binding four elements must exist one party makes an offer to another party and both must accept the offer without coercion or force from either side consideration is the price paid for the promise or agreement and it does not need to be a monetary payment consideration can be any type of property or holding that both parties agree to warrant acceptable payment both parties must have the full intention to create a binding contract and understand the terms and conditions of the agreement both parties must fully understand what must happen to complete the terms of the contract in a unilateral contract an action or task will need to be completed for the contract to be fulfilled unilateral contracts vs bilateral contractscontracts can be unilateral or bilateral in a unilateral contract only the offeror has an obligation the offeree is not required to complete the task or action in a bilateral contract both parties agree to an obligation and involve equal obligation from the offeror and the offeree in general the primary distinction between unilateral and bilateral contracts is the amount of reciprocal obligation from both parties 