Part performance by the offeree of a unilateral contract results in a contract with a condition. The condition is full performance by the offeree.
Defendant unilaterally offered in writing to sell real estate to a specified prospective buyer and agreed to pay a percentage of the sales price to plaintiff broker as a commission. Defendant, in writing, then revoked the offer. Plaintiff, claiming breach of contract, sued defendant for the commission stated in the offer. The trial court dismissed the complaint.
Does an offeror have a right to revoke his offer to enter a unilateral contract when partial performance by the offeree has already been made?
Part performance by the offeree of a unilateral contract results in a contract with a condition. The condition is full performance by the offeree. Here, if plaintiff-offeree partially performed prior to receipt of defendant's revocation, such a contract was formed. Thereafter, upon performance being completed by plaintiff, upon defendant's failure to recognize the contract, liability for breach of contract would arise. Thus, defendant's right to revoke his offer depends upon whether plaintiff had partially performed before he received defendant's revocation.