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CMA Foundation · Fundamentals of Business Laws and Business Communication · Essential Elements of a Contract, Offer and Acceptance

Mohan tells Sunita, 'I will pay you ₹10,000 if you find my lost watch.' Sunita, knowing this, finds and returns it. Classified by the way it is formed, this contract is best described as:

It is a unilateral contract accepted by performance of the conditions. Mohan alone makes a promise, and Sunita accepts by finding and returning the watch, which the Act treats as acceptance of the proposal. She made no promise, so it is not bilateral.

  1. AAn express bilateral contract
  2. BA tacit contract made by silence
  3. CA unilateral contract accepted by performing the conditionsCorrect
  4. DA wagering contract

Explanation

Only Mohan makes a promise; Sunita accepts by performing the condition, which the Act treats as acceptance of the proposal. Only one side has an outstanding obligation, so it is unilateral. It is not bilateral because Sunita made no promise to find the watch. It is not a wager, as it does not depend on an uncertain event between parties with opposing stakes.

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