Contracts
Unilateral contract
A promise given in exchange for performance; only one party is bound
An option contract is the standard example: the optionor must sell if the optionee exercises, but the optionee promised nothing and may simply let the option lapse. An open listing works the same way — the broker owes no duty to try.
How the exam asks about it
Ask which party could walk away without breaching. If only one can, the contract is unilateral.
Related terms
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