Unilateral Contract Real Estate Definition

A unilateral contract in real estate refers to an agreement made between two parties, where one party is obligated to fulfill a certain task or requirement while the other is not. In plain terms, it is a one-sided agreement that binds only one party, while the other is not legally obligated to comply.

A typical example of a unilateral contract in real estate is the option contract. This is where the seller of a property grants the buyer the right to purchase the property at a predetermined price within a specific period. The buyer is not legally obligated to purchase the property, but if they decide to go ahead with the purchase, the seller is bound to sell the property at the agreed-upon price.

Another example is an employment contract where an employer agrees to pay a certain amount of money to an employee in exchange for their services. The employee is legally obligated to provide their services, but the employer is not obligated to provide work if there is no demand for it.

Unilateral contracts in real estate are often used in situations where one party wants to secure a deal or transaction but is unsure if the other party will agree. By offering a unilateral contract, they can avoid the risk of being left with no deal if the other party decides to back out.

However, it is important to note that unilateral contracts can be risky for the party making the offer. If the other party accepts the offer, the offeror is legally bound to fulfill the terms of the contract, even if the circumstances have changed. Therefore, it is essential to carefully consider the terms of the agreement before offering a unilateral contract.

In conclusion, a unilateral contract in real estate is a one-sided agreement that binds only one party, while the other is not legally obligated to comply. It is often used in situations where one party wants to secure a deal or transaction but is unsure if the other party will agree. Before offering a unilateral contract, it is important to consider the terms carefully to avoid any potential risks.

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