Contracts and Sales Multistate Bar Practice Exam

What condition must be met for a unilateral offer to be accepted when performance is completed?

1. The offeree must have prior notice of the offer

2. Performance must be completed without any communication

3. The offeree must know of the offer at the time of performance

4. The offeror must be notified before performance begins

The correct answer is: The offeree must know of the offer at the time of performance

The condition that must be met for a unilateral offer to be accepted when performance is completed is that the offeree must know of the offer at the time of performance. In the context of unilateral contracts, the offeror makes a promise in exchange for the performance of an act. However, for the offeree to accept the offer through performance, they need to be aware of the offer when they begin their performance. This requirement is essential because it ensures that the offeree understands that their actions are intended to fulfill the offer and accept it. If they do not know about the offer when they start performing, they cannot effectively accept it, and thus no contract is formed. This principle protects both parties: the offeree is not bound to an obligation they were unaware of, and the offeror is assured that the acceptance aligns with their intent to enter into a contract. The completion of performance without prior knowledge of the offer does not achieve the legal effect intended by the unilateral offer and therefore does not establish a binding agreement.