AL Bar Practice Questions - Alabama Bar Examination Exam

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On the MBE, an offeree begins performance in response to an offer that can only be accepted by full performance (a true unilateral contract). Under the modern approach (Restatement (Second) § 45), what is the effect of beginning performance?

The offeror may revoke at any time before full performance is complete The contract is fully formed the instant performance begins Beginning performance has no legal effect An option contract is created, making the offer irrevocable for a reasonable time to allow the offeree to complete performance

Correct Answer:

An option contract is created, making the offer irrevocable for a reasonable time to allow the offeree to complete performance

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