[U038]

unilateral contract

A unilateral contract is one where the entire context and content of the contract is drawn by one party. The second party has only the option to accept or not accept the contract as written. The insurance policy is considered to be this type of contract. Any unclearness or ambiguity in such contracts is construed to be the fault of the party drawing the contract; and, therefore, legal interpretations of such will go against the drawer of the contract (the insurer) and in favor of the other party (the insured).