Unilateral Contract CASES

In English law, a unilateral contract involves one party making a promise or offer that becomes binding only when another party completes a specified action or performance.

Definition and Principles

Unilateral contracts differ from bilateral contracts because acceptance occurs through performance rather than a reciprocal promise. The promisor is bound to fulfil their obligation once the specified action is completed by the promisee.

Common Examples

  • Reward offers (e.g., for returning lost items).
  • Promotional contests (e.g., prize awarded upon completing specific actions).

Key Case

Carlill v Carbolic Smoke Ball Co (1893): A landmark case establishing enforceability of unilateral contracts when a person acts upon an advertised promise.

Practical Implications

Parties offering unilateral contracts must clearly state terms and conditions, as acceptance and contract formation occur immediately upon performance of the specified act.

Importance

Understanding unilateral contracts ensures clarity in contractual obligations, particularly for promotional offers, competitions, and reward arrangements.