Restatement (Second) of Contracts · Section § 45
Section 45 addresses the concept of an option contract created by performance of requested acts in unilateral contracts.
Source: Restatement Restatement (Second) of Contracts § § 45
When a party begins performance of a unilateral contract, the offer becomes irrevocable for a reasonable time to complete the act.
Section 45 establishes that if an individual starts performing their end of a unilateral contract, the offer can’t be revoked during a reasonable period for the performance to be completed. This protects the performing party by ensuring they can finalize their obligations without risk of having the offer withdrawn.
This section provides a safeguard for those who rely on the offeror's promise once they begin performance.
It emphasizes the importance of performance in creating binding obligations.
Illustration 1
If A promises to pay B $100 if B paints A's house and B begins painting, A cannot revoke the offer while B is painting.
Illustration 2
If A offers $500 to anyone who finds and returns his lost dog, and B begins searching for the dog, A cannot revoke the offer while B is seeking the dog.
The case illustrates that the beginning of performance might create an irrevocable offer, provided that the offeree has acted upon it.
Understanding Section 45 is crucial for parties engaging in unilateral contracts to know their rights. It ensures that once an offeree begins performance, they have an assurance that the offeror cannot simply withdraw their offer without consequence.