California
How Berryman v. Kmoch applies in California: state-specific rules, key cases, and bar exam notes for Contracts.
California follows the principle that an offer must remain open for a reasonable period of time to be accepted. Additionally, an offeror can revoke the offer before it is accepted, unless consideration has been provided to keep the offer open, known as an 'option'.
In California, the revocation of an offer is effective upon communication to the offeree, with a focus on whether the offeree has relied on the offer to their detriment.
The court held that a unilateral contract requires acceptance by performance and the offeror must honor the offer once the offeree begins performance.
The court ruled that an offer can be revoked anytime if it hasn’t been accepted unless the offeree provided consideration to establish an option.
This decision affirmed that an offer may be revoked before acceptance if the offeree has not provided consideration.
California law aligns with federal principles regarding the revocation and acceptance of offers but emphasizes reliance and equitable considerations. While federal law maintains a more straightforward approach, California often applies additional scrutiny on whether the offeree has engaged in detrimental reliance.
Candidates on the California bar exam should be familiar with the nuances of revocation and acceptance in contract law as illustrated in Berryman v. Kmoch, particularly related to reliance and the option contract doctrine.