At common law, an offer for a unilateral contract is an essential element of a legally binding agreement. An offer is a proposal made by one party to another, expressing an intention to enter into a contract on certain terms. In the context of a unilateral contract, an offer is made when one party promises to pay or perform a specific action upon the completion of a requested act by another party.
The unilateral contract differs from a bilateral contract, in which both parties exchange promises to perform under the contract. In a unilateral contract, only one party makes a promise, and the other party must complete the requested act to accept the offer and form a contract.
For example, an individual may offer to pay $50 to anyone who mows their lawn by a specified date. The offeror is promising $50 in exchange for the completion of the requested act, which is mowing the lawn. If someone mows the lawn by the specified date, they have accepted the offer and formed a unilateral contract with the offeror.
It is important to note that in a unilateral contract, the offeror cannot revoke the offer once the offeree has begun to perform the requested act. This principle is known as the rule of acceptance by performance. Once the offeree has started to perform the requested act, the offeror is bound to perform under the contract upon completion of the act by the offeree.
However, the offeree must complete the act in the manner specified in the offer. If the offer specifies a particular method of performance, the offeree must perform the act in that way. If the offeree performs the act in a different manner, this may not be considered acceptance of the offer.
Furthermore, if the offeree fails to perform the requested act or does not complete it within the specified time frame, the offer will be considered to have lapsed. The offeror will no longer be bound by the offer, and no contract will be formed.
In conclusion, an offer for a unilateral contract is a crucial element in the formation of a legally binding agreement. It is important to understand the conditions of the offer and the obligations of each party in order to ensure that the contract is valid and enforceable. By following the principles of common law, individuals can create clear and effective unilateral contracts that protect their interests and promote fair dealings with others.