A Critical Analysis of the Legal Issues Which Would Need to Be Resolved in Order to Codify the Rules Relating to Unilateral Contracts.

A critical analysis of the legal issues which would need to be resolved in order to codify the rules relating to Unilateral Contracts.

Introduction

Contract law is multi-faceted in its scope as it embodies various core legal principles that are essential to the formation of a contract. These essential components to contracts are the offer and acceptance of two or more parties, both with an intention to create legal relations undertaking mutual obligations otherwise known as consideration. In unilateral contracts one party undertakes an obligation without receiving any express promise from the other contracting party. Therefore, a party may choose to enter into the contract without reciprocating his acceptance to the offeror.

I will approach this essay by highlighting the various legal issues surrounding unilateral contracts in relation to the core principles of contract law. My essay will be divided into three sections analysing the relevant issues while referencing the appropriate case law and commentaries by well-versed academics.

Knowledge of an Offer

The issue herein lies whether the offeree need know of the offer being upon performing conditions of acceptance, in essence, whether it is necessary to show that a link exists between the act and the request that it should be performed. The very idea of offer and acceptance is centred on the meeting of the minds of both parties and reciprocation in the contractual relationship. Arguably, this reciprocation is diminished in unilateral contracts as acceptance is never expressly stated thereby leaving the intention behind acceptance open to ambiguity.

The general rule in English common law regarding knowledge is that the offeree must know of the offer in order to claim rewards as supported in the landmark case Williams v Carwardine. Here the defendant published a handbill promising £20 for whoever would give such information as would lead to the conviction of the murderer of his brother. The plaintiff had...