Question

Gretchen offers $100 to anyone who can return her lost dog, Sparky. Haley returns the dog and requests the money. Gretchen says that there is no binding contract. Which of the following is true regarding Gretchen's statement?
A. Gretchen is incorrect because there is a binding bilateral contract.
B. Gretchen is incorrect because there is a binding unilateral contract that Haley accepted by performing.
C. Gretchen is correct because there is no binding bilateral contract.
D. Gretchen is correct because there is no binding unilateral contract.
E. Gretchen is correct because Haley acted incorrectly by her manner of attempted acceptance.

Answer 1

Answer:

A. Gretchen is incorrect because there is a binding bilateral contract.

Explanation:

Mainly there are two types of contract i.e unilateral contract and the bilateral contract.

The unilateral contract is the contract when the offer is made to the anyone

while the bilateral contract is the agreement in which the both parties are agreed and bind to perform his/ her obligations.

In the given case, it reflects the bilateral contract as the Haley returns the dog and he requested for the money from the Gretchen