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Homeowner A puts a sign in front of his property after a snowstorm that says he will pay $25 to anyone shoveling his driveway. What kind of contract has he created?

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Final answer:

Homeowner A has created a unilateral contract by offering $25 to anyone who shovels his driveway, which is accepted by performance when someone completes the shoveling.

Step-by-step explanation:

The homeowner has created a unilateral contract by putting a sign in front of his property offering $25 to anyone who shovels his driveway after a snowstorm.

In a unilateral contract, one party, in this case the homeowner, makes a promise and the other party, or parties, can accept the offer by performing the requested action.

The contract is formed when someone actually shovels the driveway. Homeowner A is obligated to pay $25 to the person who fulfills the terms of the contract by shoveling the driveway.

Homeowner A has created what is known as a unilateral contract by putting a sign in front of his property offering to pay $25 to anyone who shovels his driveway following a snowstorm.

Unilateral contracts involve an offer that is open to anyone who performs the necessary act, in this case, shoveling snow. Once someone completes the shoveling, they can claim the $25, as they have accepted the offer through their performance.

User Jonas Bojesen
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