Statement of Law and Explanation: A counteroffer is a proposal made by the offeree to the offeror to enter a contract on terms different from the initial offer. If the …show more content…
Answer: In the first game of the season, Hume hit one home run over the sign. At that time, the signboard originally stated in large letters that Benson would pay $100 to any ballplayer hitting a home run over the sign. Therefore, Benson would have to pay Hume $100. After that, Benson immediately served written notice on Otis instructing Otis to replace the offer on the signboard with an offer to pay $50 to every pitcher who pitched a no-hit game in the park, but Otis had not changed the wording on the sign. For Perry who pitched a no-hit game, he could get the money because the offer was not formally made to the him. As for Todd who hit a home run over Benson’s sign could get the money either since this is a unilateral contract that cannot be …show more content…
Benson made the offer by requiring ballplayers hit a home run over the sign. By accepting the offer, Hume hit a home run over the sign, so Benson must pay Hume $100. b) Communications means an offer cannot be accepted until it is formally made to the offeree. In this case, although Benson asked Otis to replace the wording on the sign by writing “pay $50 to every pitcher who pitched a no-hit game in the park”, Otis did not change the sign so the offer was not formally made to Perry. Thus, Benson could refuse to pay Perry $50. c) Although Benson asked Otis to change the word on the sign board, Otis did not change it which means it was still a unilateral contract or it could be considered as a unilateral mistake. Unilateral mistake: where only one party has made a mistake, the general rule is that the resulting contract is valid. Therefore, Benson must pay Todd $100 since he has performed the act requested by