Question

On Monday, Neil tells Outdoor Landscaping, Inc., that he will pay Outdoor $500 if a variety of tasks are completed by Friday. On Wednesday, when Outdoor is more than half done with the work, Neil says that he has changed his mind. These parties had

Answer 1

Available Options:

a. an expired contract when Neil said that he had changed his mind.

b. a bilateral contract when Neil said that he would pay for certain work.

c. a unilateral contract as soon as Outdoor began to perform.

d. no contract.

Answer:

Option C. A unilateral contract as soon as Outdoor began to perform.

Explanation:

In a unilateral contract, the acceptance of the contract is only based on the performing of the contract.

The term of the offer includes that the acceptance would be considered if the other party completes the contract which in this case, we can see that the Outdoor Inc has started performing the contract and by the end of Friday, would probably finish its task. If Neil breaches the contract here, then he would be liable to compensate Outdoor as the contract was unilateral.