Question

How can courts prevent an offeror from revoking a unilateral contract once the offeree has started performance?

A) By enforcing the revocation.
B) By requiring written acceptance.
C) By allowing the offeror to change the terms.
D) By applying promissory estoppel.

Answer 1

Courts can prevent an offeror from revoking a unilateral contract once the offeree has started performance by applying promissory estoppel.

Step-by-step explanation:

In order to prevent an offeror from revoking a unilateral contract once the offeree has started performance, courts can apply the doctrine of promissory estoppel. Promissory estoppel is a legal principle that prevents a party from going back on their promise if the other party has reasonably relied on that promise and would suffer significant harm if the promise was not upheld.

By applying promissory estoppel, courts can enforce the offeror's promise even if there was no formal acceptance or consideration. This is because the offeree has started performance in reliance on the promise, and it would be unfair to allow the offeror to revoke the contract.

For example, if an offeror promises to pay $500 to anyone who finds their lost dog, and the offeree starts searching for the dog in reliance on that promise, the court can prevent the offeror from revoking the promise and require them to pay the $500 as originally stated.