A unilateral contract is discharged by performance when
A) a term of the contract specifies an event which must occur before the contract will proceed and that event does not occur.
B) an act of God occurs after the contract is entered into.
C) both parties perform all their obligations under the contract.
D) both parties attempt tender of performance.
E) performance is genuinely attempted by both parties even if one party's performance is incomplete.

Question

Quizplus · Accepted Answer

In a unilateral contract, the offeror promises to pay or otherwise compensate the offeree only upon the completion of a specific act. Once the offeree performs the act, the contract is considered discharged by performance. Therefore, the correct answer is C: both parties perform all their obligations under the contract.

A Unilateral Contract Is Discharged by Performance When