Petterson v. Pattberg

161 N.E. 428 · New York Court of Appeals · 1928

Facts

The defendant offered Petterson a $780 discount on his mortgage if Petterson paid the remaining principal by May 31, 1924, and made a quarterly payment due April 25th. Petterson made the April payment and, in late May, went to the defendant's home to pay the reduced amount. Before Petterson could tender the money, the defendant informed him that he had sold the mortgage and refused payment.

Issue

Can an offer for a unilateral contract be revoked before the offeree has fully completed the requested act of performance, even if the offeree has approached the offeror with the intent and ability to perform?

Holding

Yes, the court held that the defendant's offer was validly revoked before Petterson completed the act of payment. Therefore, no binding contract was formed, and the plaintiff's claim for damages was dismissed.

Rule

An offer to enter into a unilateral contract may be withdrawn at any time before the requested act constituting acceptance has been fully performed. Knowledge by the offeree that the offeror has done an act inconsistent with the continuance of the offer constitutes effective revocation.

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Case brief last reviewed 2026-03-02. Prepared by CaseReader from the published opinion.