Meaning
Promises that become binding only after the performance of a specific act allow one party to set terms without a prior mutual signature. A unilateral contract is often used for incentive programs or public offers where the founder promises a reward for a certain outcome. This arrangement remains open until the task is completed.
It does not require a formal acceptance by the other party.
Performance Requirement
Fulfillment of the specified task is the only way for the second party to earn the reward. In a unilateral contract, the promise is only enforceable once the action is finished. This creates a clear boundary between a general intent and a legal obligation.
Acceptance Method
Silence or a verbal agreement is not enough to create a binding deal in this format. Acceptance of a unilateral contract happens through the physical completion of the work. This removes the need for a long negotiation phase.
Revocation Limit
Once the performance has begun, the party who made the offer usually loses the right to cancel it. Revocation of a unilateral contract during the middle of an act can lead to legal claims for damages and lost time. This rule protects the person who is working toward the reward.
The record of when the work started is the key evidence in a dispute. A clear timestamp prevents the offer from being withdrawn unfairly.
