Restatement (Second) of Contracts · Section § 43

Restatement (Second) of Contracts § 43

Quick Answer

What does Restatement (Second) of Contracts § 43 say?

A concise overview of Restatement § 43, covering the acceptance of an offer in a unilateral contract situation.

Source: Restatement Restatement (Second) of Contracts § § 43

Rule Text
An offer that can only be accepted by performing a specified act does not require notification to the offeror of the acceptance as long as the offer was made in a manner that would put the offeror on notice of the acceptance.
Plain Language

Section 43 clarifies that in a unilateral contract, where acceptance occurs through performance of an act, the performance itself constitutes acceptance without the need for the offeree to notify the offeror. This means that as long as the offeror knows or should know of the performance, the contract is formed.

Comments

This section highlights the principle of acceptance through performance in unilateral contracts.

It emphasizes the expectation that the offeror will be notified of an acceptance through the act itself.

Illustrations

Illustration 1

If a person offers a reward for the return of a lost dog, the act of returning the dog constitutes acceptance, and notification of acceptance is not necessary.

Illustration 2

In a scenario where an offer states that a person can accept by performing a service, the completion of that service is sufficient for acceptance.

Adopting Jurisdictions
CaliforniaNew YorkTexasIllinoisFlorida
Key Cases

Carlill v. Carbolic Smoke Ball Co.

This case illustrates the application of § 43 by confirming that a unilateral offer can be accepted by performance, allowing the offeree to claim the advertised reward without notifying the offeror beforehand.

Practical Significance

Section 43 is crucial in contract law as it provides clarity on how unilateral contracts are formed through performance rather than communication. It protects offerees who perform the required acts without an obligation to inform the offeror beforehand, promoting fairness in contractual relations.

Related Sections
  • restatement-second-of-contracts-section-46
  • restatement-second-of-contracts-section-50

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