Lecture Notes on Bilateral and Unilateral Contracts

Introduction

The lecture focuses on distinguishing between bilateral and unilateral contracts, an important distinction in contract law.

Definition: A contract where both parties exchange promises.
Example: One party promises to sell a car for $100,000, and the other party promises to pay that amount.
Characteristics:
- Involves two promises, each dependent on the other.
- The contract arises when one person (promisor) makes a promise in exchange for a return promise from another person (offeree).
Further Example: A person in Singapore promises to send 20 cartons of milk to a person in Australia, who then promises to pay $500,000 upon delivery.
Key Case: No specific case mentioned.

Definition: A contract where only one party makes a promise, and the other party is expected to perform an act instead of making a return promise.
Example: An announcement promising a reward for arresting a criminal.
Characteristics:
- Involves one promise and requires action as acceptance.
- Created by general offers, often made to the public at large.
Key Case: Carbolic Smoke Ball Co. case
- The company promised £100 to anyone who contracted influenza after using their product as directed.
- The offer was made to the public, and acceptance was through performance (using the product and contracting the influenza).

Made to the public at large or to a specific person via public notice.
Types of General Offers:
- Accepted by one person: Usually in reward cases (e.g., arresting a criminal).
- Accepted by multiple persons: As in the Carbolic Smoke Ball Co. case.

Carlill v. Carbolic Smoke Ball Co.
- Advertisement constituted an offer to the whole world.
- Performance of the condition (using the smoke ball and contracting influenza) was acceptance.
- No need for notification of acceptance beyond performing the act.