UNILATERAL CONTRACT Meaning and
Definition
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A unilateral contract is a legal agreement between two parties in which only one party makes a binding promise or undertakes an obligation. In this type of contract, one party makes an offer, seeking a specific action or performance from the other party. The second party is not obligated to respond or take any action but may choose to do so in order to accept and form a contract.
The binding nature of a unilateral contract occurs when the offeree performs the requested action outlined in the offer. This act of performance serves as acceptance, creating legal obligation on the part of the offeror to fulfill the promise made. Until the performance is completed, the offeror remains under no obligation to perform or fulfill their promise.
It is crucial to note that in a unilateral contract, there is an unequal distribution of obligations between the parties. The offeror assumes a passive role, merely expecting the offeree's performance, while the latter is responsible for executing the requested action.
Unilateral contracts are commonly encountered in scenarios such as rewards or contests, where one party promises a specific reward or prize upon the completion of a particular act. It is important for individuals involved in unilateral contracts to be aware of the conditions and requirements outlined in the offer to ensure clarity and avoid any misunderstandings or disputes.
Common Misspellings for UNILATERAL CONTRACT
- ynilateral contract
- hnilateral contract
- jnilateral contract
- inilateral contract
- 8nilateral contract
- 7nilateral contract
- ubilateral contract
- umilateral contract
- ujilateral contract
- uhilateral contract
- unulateral contract
- unjlateral contract
- unklateral contract
- unolateral contract
- un9lateral contract
- un8lateral contract
- unikateral contract
- unipateral contract
- unioateral contract
Etymology of UNILATERAL CONTRACT
The term "unilateral contract" is derived from the combination of two words: "unilateral" and "contract".
The word "unilateral" is derived from the Latin words "uni", meaning "one", and "lateralis", meaning "side". It refers to something that is done by, on, or affecting one side or party only. In the context of contracts, it pertains to an agreement where one party makes a promise or undertakes an obligation without requiring a reciprocal promise from the other party.
The word "contract" is derived from the Latin word "contractus", which means "drawn together" or "bound". It refers to a legally enforceable agreement between two or more parties, usually involving an exchange of goods, services, or promises, that create mutual obligations and rights.
Similar spelling words for UNILATERAL CONTRACT
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