10-3 Types of Contracts: Burger Baby restaurants engaged Air Advertising to fly
ID: 359417 • Letter: 1
Question
10-3 Types of Contracts:
Burger Baby restaurants engaged Air Advertising to fly an advertisement above the Connecticut beaches. The advertisement offered $1,000 to any person who could swim from the Connecticut beaches to Long Island in less than a day. At 10:00 A.M. on October 10, Air Advertising's pilot flew a sign above the Connecticut beaches that read: "Swim across the Sound and Burger Baby pays $1,000." On seeing the sign, Davison dived in. About four hours later, when he was about halfway across the Sound, Air Advertising flew another sign over the Sound that read: "Burger Baby revokes." Davison completed the swim in another six hours. Is there a contract between Davison and Burger Baby? Can Davison recover anything?
Identify and discuss the relevant legal issues and discuss them fully. Specifically state what you think the outcome will be and why. Be sure to include the applicable general rules as well as any exceptions and whether they apply. Consider each element of the cause of action as well as defenses. Your response should range between 250 and 350 words
Explanation / Answer
Yes, there is a contract between Davison and Burger Bay restaurants. The reward offered by Burger Baby Restaurants is a unilateral contract where one party makes a promise in exchange for the performance from other party. Unilateral contract is a legally enforceable promise made between two parties to do some act or to refrain from doing some act. It is a one sided contract and the action can take place in future and does not demand immediate action. The offeror can terminate the contract at any time but before the acceptance by the offeree. Once the offer is accepted and the performance began, the offeror cannot terminate the contract. Burger Baby restaurants revoked the contract when Davison started swimming and was halfway of completing his performance. In this case Burger Baby Restaurants cannot terminate the contract since Davison has already started the performance and Burger Baby Restaurants is obliged to pay him the reward of $1000 if he completes swimming to Long island in less than a day. If Burger Baby Restaurants refuse to pay Davison, he can take legal actions against the offeror and court would order in favor of Davison. The defenses can be the power of offeror to terminate the contract, but the same would not stand as the performance has already begun. Another defense can be the reward offer was just an advertisement and can be revoked by the offeror, but when the advertisement contains a promise it becomes a unilateral contract. Hence the outcome would be in favor of Davison.
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