JD Next Practice Exam

Which statement about a unilateral offer is false?

1. An offer that can be withdrawn is valid

2. It binds only one party to perform

3. Acceptance must occur before performance

4. It is not conditional on any promise

The correct answer is: An offer that can be withdrawn is valid

In the context of unilateral offers, the statement describing that an offer can be withdrawn is not accurate. A unilateral offer is a type of contract where one party makes a promise in exchange for an act by another party. The critical aspect of a unilateral offer is that it becomes irrevocable once the offeree begins performance of the act. This means that while the offeror can withdraw the offer before acceptance or before the act is initiated, once the offeree has started to perform the specified act, the offer cannot be retracted and the offeror is bound to fulfill their promise. Therefore, it is fundamentally incorrect to assert that a unilateral offer can be freely withdrawn at any point, particularly after the performance has commenced. The other statements about unilateral offers accurately reflect their nature: they are binding on only the offeror until the offeree performs, acceptance occurs through the act itself rather than a verbal or written agreement, and they are unconditional in that they do not require a reciprocal promise from the offeree.