Is anybody have seen someone accept unlawful territory demand from Emperor?
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I've never seen it. I think it's mainly intended to be a mechanic that the Emperor uses to piss off those he doesn't like (and those he does like, for that matter). Personally, I don't see why the AI ever asks for it, past increasing revolt risk for a few years -in my Austria and France games as the Holy Roman Emperor, the AI will never ever accept unlawful territory, even if they're my allies, with 150+ relations. It just makes everybody else in the Empire temporarily annoyed at them, so I personally never use it. You already get the Imperial Liberation CB if they've eaten another minor - and even if you don't have the CB, it's trivially easy to get an enforce peace, or Cancelled Loan on them.
Think of it as a deterrent to conquest, like how Local Nobility increases coring costs. If the Emperor didn't demand unlawful territory, then everyone would know he's soft on the issue and the deterrent wouldn't work any more. In practice it doesn't deter the AI that much, but it certainly deters players who don't want to deal with all those annoying penalties.
Also, if the Emperor does want to use that Imperial Liberation CB, making everyone else in the Empire hate them is a good start, because it could break some alliances they might have with HRE states.
Do tell more about it happening. Is it OPMs accepting or something? I've never seen it.
It can deter players, too. 2 province minor Münster conquering an OPM then getting a demand from the Austrian emperor (allied with several large nations). Of course I'm going to give back the freaking province, I don't need Austrians all over my land.
That was my first run through the HRE and I found out about prolonging wars a bit later.
As a player I've done it during my current Brandenburg game. The real crazy part was it was the emperor himself who gave me the territory! He declared war on Bohemia for eating Silesia, called me in as his ally, and I'd conquered half of Bohemia, so in the peace deal (that the ever trolling Hapsburg Emperor signed) gave me Oberpflablargle. A few months later he demands unlawful territory, so I quickly flipped it back to Bohemia for 40 ducats (he was broke, so couldn't get more) Sure it wasn't exactly how the emperor meant it, but hey it worked.
As for using the Unlawful Territory as Emperor I used it myself recently too. Against Bohemia again natch. They ate most of Saxony, leaving only Saxony itself. Since they hadn't annexed anyone, ang both Saxony and Thuringa existed, i had to use the Demand Territory to get the CB to attack. Granted I didn't exactly give the territory back to Saxony... I'm trying to form Germany and Leipzig is kinda needed, so sorry Saxony. You can have Wittenburg back.
As for using the Unlawful Territory as Emperor I used it myself recently too. Against Bohemia again natch. They ate most of Saxony, leaving only Saxony itself. Since they hadn't annexed anyone, ang both Saxony and Thuringa existed, i had to use the Demand Territory to get the CB to attack. Granted I didn't exactly give the territory back to Saxony... I'm trying to form Germany and Leipzig is kinda needed, so sorry Saxony. You can have Wittenburg back.
I abuse this mechanic for IA, let a ally take some land they cannot core, they demand unlawful territory from them for about 10 IA
As Emperor I've used it to success, but I've always consistently ignored it when demanded, even as OPM Saxe-Lauenberg or any other OPM or minor. The AI tends not to use the CB.
Talking about obscure mechanisms, has anyone else been on the receiving end of Enforce Peace?
Well it has happened to me before. And France was the one enforcing peace on my Brittany.
So that's a black swan.