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Unilateral and Bilateral Contracts

On June 1, Owner orally offered to pay Andy $1000 if Andy would repair the roof at Owner's beach cottage. Andy requested time to think it over. Owner told Andy that he would give Andy a couple of days to think about it, but that he had to know Andy's decision no later than June 3.

On June 3, Owner, impatient at waiting from word from Andy, offered Brenda $1,000 if Brenda would promise to repair the roof at the cottage. Brenda stated that she would take her equipment to the cottage tomorrow and if the job looked worth it, she would start right in. Brenda also stated that if it appeared not to be worth it, she would contact Owner and give an estimate of her price. Owner consented to the arrangement.

When Brenda arrived a the cottage on June 4, she saw Andy working on the roof. Andy explained to her that he decided to accept the job, and that he had begun working on the project on the afternoon of June 3, and that he had dispatched a letter to Owner that at about 9:30 p.m. that previous night saying that he would undertake the work.

1. Which of the following is true?

a. Andy had to notify the Owner of his acceptance before he started work on the roof, or else his acceptance was ineffective.

b. Andy's commencement of the work and material performance of the agreement, combined with his notification prior to the revocation of the offer, constituted acceptance.

c. The owner revoked the offer prior to Andy's acceptance.

d. None of the above.

2. Which of the following is false?

a. Andy's acceptance was not received by the Owner in time. Therefore, Brenda could accept the offer by telling Andy to get off the roof so that she could complete the job.

b. If the offer was for a unilateral contract, Andy accepted by commencing performance prior to receipt of revocation.

c. If the offer was for a bilateral contract, Andy accepted by notification of acceptance prior to receipt of revocation.

d. None of the above.

Solution Preview

1. Which of the following is true?

a. Andy had to notify the Owner of his acceptance before he started work on the roof, or else his acceptance was ineffective.
b. Andy's commencement of the work and material performance of the agreement, combined with his notification prior to the revocation of the offer, constituted acceptance.
c. The owner revoked the offer prior to Andy's acceptance.
d. None of the above.

Best Answer: b. Andy's commencement of the work and material performance of the agreement, combined with his notification prior to the revocation of the offer, constituted acceptance.

Why? Given the information above, this appears to be a unilateral contract n. an agreement to pay in exchange for performance, if the potential ...

Solution Summary

Based on the scenario about contracts, this solution chooses the best options for two multiple choice questions, and then provides a rationale for why it the best choice.

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