unilateral contract

Definition 1

Contract arising where one party (the promisor) makes an offer to pay another party (the promisee) in return for the performance of an act, and the promisee gives his or her assent by performing the said act. A reward offered for providing certain information is an example of a unilateral contract.

Definition 2

Type of contract in which only one of the contracting parties is under an enforceable obligation. For example, under an insurance contract, only the insurer makes a promise (to make a loss good or pay compensation) whereas the insured does not make any promise and, to keep his part of the deal, only pays a premium.