MBE Rules · Contracts

Acceptance by performance vs. promise

The rule

A unilateral contract is accepted only by complete performance (beginning to perform creates an option but does not accept). A bilateral contract is accepted by a return promise. If the offer is ambiguous, the offeree may accept either way under UCC §2-206 and Restatement §32.

In plain English

In a unilateral contract, you accept by doing the task. In a bilateral contract, you accept by promising to do the task. If it's unclear, you can accept by either doing the task or promising to do it.

Worked example

The defendant offers $100 to anyone who mows his lawn. Alex mows the lawn, accepting by performance. If the defendant says, 'I'll pay you to mow next week,' Alex accepts by saying, 'I promise to mow then.'

Memory hook

Perform or Promise? Know your path! Unilateral needs full act; bilateral just a nod.

The trap

Students think: Starting a task accepts unilateral contracts. Wrong, because it only creates an option. Full performance is needed.

How examiners test it

Test setup: ambiguous offer for a service. Trap: students assume any start accepts. Look for full performance or a clear promise to determine acceptance.

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