oboloo Glossary

Unilateral Contract

oboloo Glossary

Unilateral Contract

A unilateral contract is an agreement in which one party makes a promise and the other party accepts upon completing the requested action. Unlike bilateral contracts, only one party is obligated to fulfill their part of the agreement – making unilateral contracts advantageous for businesses seeking less commitment or risk. The offeror (or promisor) can revoke their offer before it’s accepted by the offeree (or obligee). By accepting the offer, the obligor agrees to complete the required action in exchange for something of value from the offerer. Unilateral contracts create a win-win situation, as both parties benefit from the terms agreed upon.