buckiguy_sucks wrote:Since this is a Qs thread now, can someone explain to me with an example what a unilateral contract is? My understanding is offer--performance instead of offer-offer but how would that look in an example? Is there still consideration on the part of the offeree in a unilateral contract?
My prof really doesn't like unilateral K's. There's a Restatement that basically says unilateral K's are basically bilateral K's where the offeree is given an option once they begin performance. It's one of those things that are debatable so you can argue BOTH SIDES.
General rule is that once offeree begins performance, offeror can't rescind (I think). I haven't outlined my unilateral K section yet.
Classic unilateral K is a reward. $999 for the homie who finds my lost watch. If you decide a week later that you don't want the watch anymore, and take the signs down, someone who drove around for a few days would be hard pressed to argue that he "began performance". If he sued you for gas money/lost wages, he wouldn't win. But, if they find your watch and bring it to you, that's tendering performance so they've done their part, and you're bound. I'm not sure how you'd argue that driving around looking for the watch isn't "beginning performance", but you'd sure have to on an exam.
There is consideration. Offeror promises to pay (or do something). Offeree performs. You can derp around with mutual assent/bargain (inducement). This is a K where there is no mutual obligation, however, since the offeree isn't bound to do anything ever. The K is formed when the offeree begins performance, but the offeree can terminate at will (since they have an option). Not sure how this connects to limited promise Ks, but like I said I haven't outlined this far yet.
I'm aware there's a whole acceptance element too, but we didn't discuss it. I.E. if I find the watch, but didn't know about your sign, do I get $$? I think the rule is no. Or if you rescind, but idk about the rescission, and I get you your watch, are you bound? I'm guessing you are, but again, idk. We didn't cover this in class, so idk the rules.
Also, distinguish advertisements, which are generally held not to be unilateral Ks. Again, did not really cover this in class so idk.
Also, "$100 to mow my lawn." What if they go out and buy a lawnmower, but don't start before you retract? Prep costs usually can't be recovered. I don't expect unilateral K to be a big part of the exam to be honest.