Unilateral Agreement Example
A unilateral agreement is a legal contract in which only one party promises to do something. It is also known as a one-sided contract or a one-way contract. An example of a unilateral agreement can be seen in the case of a reward offer.
Let`s say a company offers a reward of $1,000 to anyone who can provide information leading to the arrest and conviction of a criminal. In this scenario, the company is entering into a one-sided agreement. The company is not required to do anything until someone comes forward with the information that meets the conditions of the reward offer.
Once someone provides the required information, the company will be legally obligated to pay the reward. However, if no one comes forward with the necessary information, the company is not required to pay anything.
Another common example of a unilateral agreement is a contract of adhesion. A contract of adhesion is a standardized agreement offered on a take-it-or-leave-it basis. These types of contracts are common in industries such as insurance and banking.
For example, a bank may offer a credit card agreement that includes a unilateral agreement. The bank promises to provide credit to the cardholder but only under certain conditions, such as making timely payments and not exceeding the credit limit.
In this scenario, the cardholder is not required to promise anything in return. The bank is entering into a one-sided agreement where they promise to provide credit only if the cardholder meets the conditions outlined in the contract.
In conclusion, a unilateral agreement is a legal contract where only one party promises to do something. Examples include a reward offer and a contract of adhesion. It is important to understand the terms of any contract before signing it to ensure that you are not entering into a one-sided agreement that may not be in your best interests.