Unilateral Contract Law

Unilateral Contract

Offer and Acceptance

• A unilateral contract is formed when one party makes an offer that can be accepted by performing a specific act
• The offeror promises to do something in return for the offeree's performance
• Acceptance is made by the offeree's performance, not by promising to perform
• Silence or inaction can constitute acceptance if the offeror has indicated that this will be sufficient

Consideration

• A unilateral contract is a type of contract that does not require consideration from the offeree
• The offeror provides consideration, but the offeree does not
• The offeree's performance is the consideration for the offeror's promise

Intention to Create Legal Relations

• A unilateral contract requires an intention to create legal relations between the parties
• The offeror must intend to be legally bound by their promise
• The offeree's intention is not relevant, as they are not making a promise

Unilateral vs Bilateral Contracts

• Unilateral contract: one party makes a promise in exchange for an act, with no promise from the other party
• Bilateral contract: both parties make promises to each other
• Unilateral contracts are often used in reward or competition situations

Examples

• A lost dog owner offers a reward to anyone who finds their dog. A person who finds the dog and returns it to the owner has accepted the offer and is entitled to the reward.
• A company announces a competition, where the winner will receive a prize. The company is making an offer to all participants, and the winner accepts the offer by winning the competition.

Cases

• Carlill v Carbolic Smoke Ball Co. (1893): A company advertised a reward for anyone who could prove that their product did not prevent influenza. The court held that the advertisement was an offer, and the plaintiff's use of the product was acceptance of the offer.
• Williams v Carwardine (1833): A person offered a reward for information leading to the conviction of a murderer. The court held that the offer was a unilateral contract, and the person who provided the information was entitled to the reward.