contracts
unilateral contract
A unilateral contract is an agreement in which only one party makes a binding promise, and the other party is not obligated to act but may accept by performing. Only the promisor is bound until performance occurs. Common real estate examples include open listings, where the owner promises to pay whichever broker produces a buyer, and option contracts, where only the optionor is obligated.
- Exam tip
- Unilateral equals a promise for an act; bilateral equals a promise for a promise. Most purchase agreements and exclusive listings are bilateral.
- Example
- An owner announces a $5,000 reward for anyone who finds a tenant; no one must search, but the person who succeeds is entitled to payment.
Related terms & state variants
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Last verified: 2026-10-23