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reverse unilateral contract


reverse unilateral contract, defined:

a contract where some action is given in exchange for a promise (unilateral contract) which is initiated by the party who performs the action. The novice may have a bit of trouble with this term. Things become clearer, though, by first looking at a simple example of a unilateral contract. In a unilateral contract the offer is made by the party who gives a promise in exchange for some performance. Let's say that you promise to pay the neighbor's son if he will mow your lawn. If he accepts, a unilateral contract has been formed. The reverse unilateral contract is distinguished from the unilateral contract in that the performer, not the promisor, makes the offer. Going back to our example, if the neighbor's son approaches you, offering to mow your lawn for money and you accept, a reverse unilateral contract has been formed.

reverse unilateral contract, as it might be used:

It is a reverse unilateral contract in that the applicant's acts of performance induce the insurer's promise.
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