In a unilateral contract, what is the legal effect of the offeree beginning performance?

In a unilateral contract, what is the legal effect of the offeree beginning performance?

• A. It operates as acceptance
• B. It creates a bilateral contract
• C. It has no effect until completion
• D. It terminates the offer

Answer: (C)

In a unilateral contract, acceptance is by completing the performance, not by promising to perform. Merely starting the requested performance does not bind the offeror or form a contract. The agreement is formed only when the performance is fully completed. Until that completion, there’s no binding contract and the offeree bears the risk that payment is not owed if the performance isn’t finished. For example, if someone offers $100 to anyone who paints a house, beginning to paint does not create the contract or entitlement to $100—the contract only arises once the painting is completed.

In a unilateral contract, acceptance is by completing the performance, not by promising to perform. Merely starting the requested performance does not bind the offeror or form a contract. The agreement is formed only when the performance is fully completed. Until that completion, there’s no binding contract and the offeree bears the risk that payment is not owed if the performance isn’t finished. For example, if someone offers $100 to anyone who paints a house, beginning to paint does not create the contract or entitlement to $100—the contract only arises once the painting is completed.