Unilateral and Implied Contracts

Contracts

Part 1

Summary of the Facts: Monica (the plaintiff) enters a race dubbed Pioneer Trail Ultramarathon, whereby the first price set by Rocky Mountain Races, Inc. (the defendant), the race sponsor, is $10,000. As per the rules set by Rocky Mountain Races, Inc., competitors must run all the way to the peak of Pinnacle Mountain, from the Blackwater Canyon floor. Monica wins the race but is offered a prize of $1,000 by the Rocky Mountain Races, Inc., instead of the advertised first price of $10,000. It is important to note that Rocky Mountain Races, Inc. rules of participation permit it to adjust race terms at any point. Monica sues for breach of contract.

Legal Issues Involved: Does a valid contract exist between Monica and Rocky Mountain Races, Inc.? Monica ought to prove that a valid contact existed between her and Rocky Mountain Races, Inc., that the contract’s terms were breached, and that she suffered damages. It is important to note that in instances whereby “the offer is phrased so that the offeree can accept the offer only by completing the contract performance, the contract is a unilateral contract” (Miller, 2014, p. 209).

Analysis of the Case: Monica accepted the offer and completed the contract by way of participating in the race. The clause whereby Rocky Mountain Races, Inc. reserves the right to make amendments to the race terms is only valid before the offeree (Monica) accepts the offer.

Conclusion: The unilateral contract between Rocky Mountain Races, Inc. and Monica is legally binding. No changes to the race terms were made before acceptance, which in this case constitutes Monica’s participation in the race. Rocky Mountain Races, Inc. is liable for the full offer prize set, i.e. $10,000.

Part 2

Summary of the Facts: On recommendation of her doctor, and upon request by a hospital where she is admitted for severe abdominal pain, Janine is provided with a full month worth of nursing care (2 week in-hospital care and 2 week at-home care) by Nursing Services Unlimited. Upon her recovery, she is presented with a $4,000 bill by Nursing Services Unlimited for services rendered. She refuses to pay on the grounds that she did not contract for the services from the nursing services company. Nursing Services Unlimited sues with an aim of recovering the billed amount from Janine.

Legal Issues Involved: Given that Janine did not contract for the services of Nursing Services Unlimited, either in writing or orally, is she liable for the billed amount? A contract could be categorized as being implied or express. In an implied contract, “the conduct of the parties, rather than their words, creates and defines the terms of the contract” (Miller, 2014, p. 210). The contract existing between Janine and Nursing Services Unlimited is an implied contract. According to Miller (2014), courts are likely to hold that there is indeed an implied contract on the basis of the existence of these three conditions; that some service was furnished by the plaintiff, that the there was an expectation of payment for service rendered by the plaintiff which the defendant ought to have been aware of, and that the defendant had an opportunity to protest the services which they did not.