Written by attorneys · grounded in primary & secondary sources — see below
A mode of accepting an offer by giving a return promise to perform rather than by rendering the invited performance itself.
Sources & Authorities
How it applies
Common Examples
2
Unilateral Offer Creates Option
Prism Analytics emailed freelance coder Philip Powell a detailed request for a working software module and promised payment upon delivery. The message invited no return promise. Philip began coding the module the next day. An option contract formed that barred Prism from revoking while Philip continued the work.
Manifested Non-Acceptance Bars Contract
Pulse Media posted a public reward for the first developer who identified a security flaw under specified testing rules. The post invited no promises. Developer Pablo Perez began the tests and completed most of the protocols. Pablo then emailed Pulse that he would finish only if the company added extra payment terms. The email prevented Pablo's partial work from operating as acceptance.
Put it into practice
Test Yourself
10
Practice Questions5
· 3 sources
Select any source to read its text and confirm it supports the definition.
Restatements
Casebooks
Common questions
Frequently Asked
4
When does an offer invite promissory acceptance rather than acceptance by performance?+
An offer invites promissory acceptance when its language and circumstances show that the offeror seeks a return promise to conclude the bargain. The Restatement sections distinguish this from offers that invite only the requested performance. Courts examine the offer's wording to determine the intended mode of acceptance.
Supporting sources
What legal consequence follows when an offer does not invite a promissory acceptance and the offeree begins performance?+
An option contract arises that makes the offer irrevocable for a reasonable time while the offeree completes the invited performance. The offeror's ultimate duty to pay remains conditional on full completion. This protection prevents revocation after the offeree has relied by starting the work.
Supporting sources
Can an offeree who begins performance later prevent contract formation by manifesting an intention not to accept?+
Yes. If the offeree manifests an intention not to accept before the offeror performs, the partial performance does not constitute acceptance. The rule in section 53(3) treats that manifestation as negating any acceptance by performance.
Supporting sources
Does the offeree's reply requesting additional terms prevent acceptance by performance under a unilateral offer?+
The reply can show that the offeree did not treat the offer as inviting acceptance by performance alone. When the reply conditions payment on further written confirmation that the offeror never provides, the performance does not operate as acceptance.
Supporting sources
ContractsFormation of contracts · Mutual assent (offer and acceptance, and unilateral, bilateral, and implied-in-fact contracts)NEXTGENFoundational