Question

Mrs. Martin tells some neighborhood kids that she will pay $100 if any of them mows her lawn. Jake goes to a hardware store, purchases a lawnmower for $60, and then mows Mrs. Martin's lawn. Jake has entered into which types of contract?

Answer 1

Answer:

a. Jake has made a unilateral contract with Mrs. Martin and a bilateral contract with the hardware store.

Explanation:

Note that a unilateral contract occurs between Jake and Mrs. Martin because in business law this contract is created by an offer (the $100 to be paid) which is then accepted through performance (by Jake mowing the lawn).

Next Jake purchases a lawnmower from a hardware store in which a transfer of title for the lawnmower occurs (a bilateral contract). According to business law it is a case of bilateral contract because something of specific of value is exchanged; meaning $60 is paid to transfer ownership of the lawnmower .