A unilateral agreement is a legally binding contract between two parties in which only one party is obligated to fulfill the terms of the agreement. This type of agreement is often used when one party desires something that the other is willing to provide, but both parties don’t want the hassle or cost of forming a standard agreement. It can also be used to protect intellectual property, such as proprietary information or inventions. Unilateral agreements are commonly used in business transactions and must comply with state and federal laws.