Unilateral Contract Law

Questions and Answers

To perform a specific act to accept the offer

The offeror's promise to do something in return

An intention to create legal relations from the offeror only

One party makes a promise in exchange for an act, while both parties make promises in a bilateral contract Signup and view all the answers

Reward or competition situations Signup and view all the answers

The offeree is entitled to the promised consideration Signup and view all the answers

Because the offeree is not making a promise Signup and view all the answers

It can constitute acceptance if the offeror has indicated that it will be sufficient Signup and view all the answers

The offeree's performance of a specific act Signup and view all the answers

A lost dog owner offering a reward to anyone who finds their dog Signup and view all the answers

Study Notes

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

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

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 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

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.

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.