When an offeree begins performance of a unilateral contract, which statement is TRUE?

Study for the Themis Contracts Exam. Practice with comprehensive quizzes with flashcards and multiple choice questions, each question comes with detailed explanations. Be fully prepared for your exam!

Multiple Choice

When an offeree begins performance of a unilateral contract, which statement is TRUE?

Explanation:
In a unilateral contract, acceptance happens by performing the act the offer requests. Once the offeree has begun that performance, the offer generally becomes irrevocable for the portion started, and the contract relates to payment for the act performed so far. Because the offeree has already accepted by starting performance, the offeror cannot demand that the offeree finish the entire performance as a condition of payment. The promise to pay kicks in for the work that has been begun, and the offeror cannot insist on completion beyond what has already been initiated. The other statements don’t fit this twist: revoking after performance has begun is typically not allowed, and a contract isn’t guaranteed to form simply by starting performance; payment is tied to completing the performance, not to a new obligation imposed after the start.

In a unilateral contract, acceptance happens by performing the act the offer requests. Once the offeree has begun that performance, the offer generally becomes irrevocable for the portion started, and the contract relates to payment for the act performed so far. Because the offeree has already accepted by starting performance, the offeror cannot demand that the offeree finish the entire performance as a condition of payment. The promise to pay kicks in for the work that has been begun, and the offeror cannot insist on completion beyond what has already been initiated. The other statements don’t fit this twist: revoking after performance has begun is typically not allowed, and a contract isn’t guaranteed to form simply by starting performance; payment is tied to completing the performance, not to a new obligation imposed after the start.

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