Unilateral Contracts vs. Bilateral Contracts, Lecture notes of Contract Law

Download Unilateral Contracts vs. Bilateral Contracts and more Lecture notes Contract Law in PDF only on Docsity! Unilateral Contracts vs. Bilateral Contracts A unilateral contract is a promise in exchange for a performance. A bilateral contract is a promise in exchange for a promise. Note: An implied-in-fact contract is a bilateral contract even though it may be established by an action rather than a verbal promise. Unilateral Contract: only one party is bound by contract. Bilateral Contract: Both parties are bound. Acceptance of a Bilateral Contract Acceptance must be communicated to the offeror. UCC § 2-206: Any “reasonable” method of acceptance is valid, including: o Verbal acceptance o Acceptance by action that implies an acceptance o Shipping in response to an order of goods o Silence; if the offeree fails to return something that she was supposed to return if she wasn’t going to buy it or in another case where silence can reasonably be interpreted to be an acceptance. Acceptance of a Unilateral Contract - Acceptance of a unilateral contract must come in the form of performance! - The performance has to be intended to be an acceptance of the offer. If the person doing the performance did not know of the offer, performance is not an acceptance and the offeror is not bound. - Part performance of a unilateral contract makes the offer irrevocable. - Mere preparation to perform does not constitute and acceptance. Quiz Time! The Mailbox Rule (Applies also to fax, e-mail etc.; but is most important to methods of mail that are not instantaneous.) - An Offer is valid only when received by the offeree. - A Revocation of the offer by the offeror is valid only when received by the offeree. - A Rejection of the offer by the offeree is valid only when received by the offeror. BUT - An Acceptance of an offer is valid as soon as it is sent by the offeree.