Davis v. Jacoby
1 Cal. 2d 370 · California Supreme Court · 1934
Facts
Rupert Whitehead, ill and in financial distress, offered his niece Caro Davis and her husband Frank that if they moved from Canada to California, Frank would manage his affairs, Caro would care for his sick wife Blanche, and Caro would inherit everything. He explicitly requested an immediate reply. The Davises sent an acceptance letter by air mail, stating they would come, which Whitehead received before he committed suicide. Despite his death, the Davises moved to California, and Caro cared for Blanche until her death, but Whitehead's will left his estate to his nephews, not Caro.
Issue
Was Rupert Whitehead's offer to Caro and Frank Davis for a bilateral contract, accepted by their promise to perform, or a unilateral contract, requiring full performance before acceptance, and thus revoked by his death?
Holding
The court held that Rupert Whitehead's offer was for a bilateral contract, which was accepted by the Davises' letter of April 14, 1931, before his death. Therefore, the Davises fully performed their part of the contract, entitling them to specific performance.
Rule
An offer is presumed to invite the formation of a bilateral contract, accepted by a promise to perform, rather than a unilateral contract requiring actual performance, especially when the offeror requests an immediate reply. When an offeror specifies a mode of acceptance, acceptance in that mode is binding.
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