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One of the issues that seems to trouble students of Business Law is the concept of a unilateral versus a bilateral contract. On the surface,

One of the issues that seems to trouble students of Business Law is the concept of a unilateral versus a bilateral contract. On the surface, they seem quite clear, so many students do not spend the time that they ought to analyze the differences. This week's Discussion Board will help clarify these concepts.

  1. Define a unilateral contract.
    1. How is a unilateral contract accepted?
    2. Please provide a short example of a unilateral contract.
  2. Define a bilateral contract.
    1. How is a bilateral contract accepted?
    2. Please provide a short example of a bilateral contract.

3. For the following hypotheticals, please identify whether the contract described is a unilateral or a bilateral contract, then explain why you chose the option that you did.

a) After saving for several years, Sarah is finally ready to purchase a home. After touring several homes, she finds one that she likesa gorgeous Victorian set on a beautiful lot filled with flower beds and a small stream that curves through the rear of the property. Sarah submitted an offer to purchase the home for $350,000, which is the full asking price. Luis promptly accepts by signing the offer form and returning it via his realtor. A closing date is set for later that month.

  1. How did Sarah make her offer?
  2. How did Luis accept?
  3. Is this contract to purchase this home a unilateral or a bilateral contract? Why?

b) Once she has moved in, Sarah is excited by the many possibilities. After living in apartments, she can finally make this home her own without anybody telling her she cannot do something. She spends many hours after work removing wallpaper, fixing nail holes, and repainting. By the end of the night, she is exhausted but satisfied with her progress.

After several weeks of non-stop work on the interior, Sarah is sipping a cup of coffee while relaxing on the front porch swing. She gazes around her property and notices that the lawn has grown to be quite shaggy, and her flower beds are filling with weeds. Startled, she realizes, she does not even own a lawnmower!

At about that time, a couple of young teenage girls were riding by on their bikes and they stopped to chat with her. They ask if she was the new owner and explain that they live a few houses down. After a little bit of small talk, Sarah tells the girls that she has been working quite hard on the inside, but sadly has neglected the outside. She tells them that if they or one of their friends mow her yard and weed the flowerbeds, she will happily pay them $200 for the work. The yard is quite large and more than a little overgrown, but a regular lawn mower could still trim it up nicely.

The girls say they will think about it and a few days later, Sarah returns home from work to see her yard beautifully trimmed up and the flowerbeds cleared of weeds. A note on the door from the two girls says that they decided to take care of the yard for her and asks when a good time would be to come by for the $200, along with a phone number.

  1. How did Sarah make her offer?
  2. How did the girls accept?
  3. Is this contract to perform lawn care a unilateral or a bilateral contract? Why?

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