bilateral and a unilateral contract

Business and Company Law

GA506/MA506

Tutorial Three

Unit Coordinator:         Dr. Tushar Das

Tutorial Questions

Discussion Questions

1. What is the difference between a bilateral and a unilateral contract?

• For an agreement to be enforceable, what factors will the courts consider?

• Why doesn’t a deed require consideration?

Problem Questions

1. George lost his dog, a golden labrador called “Boof” with a distinctive brown patch on his back. After days of fruitless searching he decided to place an advertisement in the Public Notices section of his local newspaper offering a $250 reward for anybody who either returned the dog or provided information that led to Boof’s return. Sophia saw the notice in the newspaper and was aware that her next-door neighbours had recently found a labrador and so she rang the number and told George about the dog the neighbours had found. When George went to the address given by Sophia he discovered that the labrador was indeed Boof.
   Should George have to give Sophia $250? If you think he does, is this an example of a bilateral or unilateral contract?

• Examine a standard loan agreement from a bank or credit union. Read the agreement and answer the following questions, applying what you have learnt in the chapter so far:
  • Who are the parties to the agreement?
  • Who made the offer?
  • Who accepted the offer? How?
  • Did the parties have an intention to contract? How do you know this?
  • What is the consideration for the promises made?
  • When does the agreement become a valid contract between the lender and borrower?
  • What are the terms of the contract?

3. Do you think that there might be additional terms not written in the agreement? What are such terms called?
4. What are the monthly/fortnightly instalments payable under the contract? When are they due?
5. What are the consequences of the borrower failing to make a payment on time? Can the lender sue for breach of contract?
6. In what circumstances can the borrower terminate the agreement?
7. In what circumstances can the lender terminate the agreement?
8. What if the borrower was, unknown to the lender, under 18 years of age at the time of borrowing (and therefore lacking contractual capacity)?
9. How might the borrower argue that he or she is not bound by the agreement?
10. What laws govern the contract?