Awadhshree Multi speciality Hospital

Revocation of a Unilateral Contract

Revocation of a Unilateral Contract: Understanding the Basics

A unilateral contract is an agreement in which one party promises to perform a specific act or service in exchange for acceptance by the other party. In such a contract, only one party is bound to perform, and the other party is free to accept or reject the offer.

However, once the accepting party has begun to perform or has fully performed the act or service requested by the offering party, a binding contract is formed, and the offering party must fulfill their obligations. In such a scenario, the offering party cannot revoke the offer.

But what happens if the accepting party has not yet fully performed the requested act or service, and the offering party wants to revoke the offer? Can they do so?

The answer is yes, but only under specific circumstances.

Revocation of a unilateral contract can occur if the offering party revokes the offer before the accepting party has begun to perform the requested act or service.

For example, let`s say that a homeowner needs their lawn mowed and places an ad in the local newspaper offering $50 for the service. If someone sees the ad and decides they want to perform the job, they must begin mowing the lawn before a binding contract is formed. If the homeowner changes their mind and revokes the offer before the accepting party has started to mow the lawn, then they can do so without any legal repercussions.

However, if the accepting party has already begun to mow the lawn, a binding contract is formed, and the homeowner cannot revoke the offer. The accepting party must be allowed to complete the job and receive payment as agreed.

It`s also important to note that some contracts may specify a time limit for the accepting party to begin performing the requested act or service. In such cases, if the accepting party does not begin performing within the specified time frame, the offering party may revoke the offer without legal consequences.

In conclusion, while unilateral contracts offer flexibility for both parties, it`s essential to understand the circumstances under which the offering party can revoke the offer. Revocation is only possible before the accepting party begins to perform the requested act or service. Once the accepting party has started performing, a binding contract is formed, and the offering party must fulfill their obligations. As always, it`s best to consult with a legal professional to understand the specific terms and conditions of any contract.

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