Question

An auto retailer started a marketing promotion on a new hybrid model sedan. It advertised that anyone who purchased the car in 2019 and did not get at least 50 miles per gallon average gas mileage during the first 60 days, would receive a payment of $10,000 cash from the company. Record-keeping and inspection procedures were required to assure accurate reporting by the vehicle owner.

The promotion was widely publicized. A female customer purchased a hybrid model during the promotion period, followed all the rules, and recorded only 42 mpg in the first 60 days. She demanded the rebate but the company stalled for months and then stopped responding to her inquiries.

Does she have a contractual right to collect the $10,000?

	A.	No, this was merely puffery, was not an offer to contract with any particular person and was without consideration.
	B.	Yes, because this is a classic bilateral contract, making it necessary that the company live up to its set of promises made to her.
	C.	Yes, this was unilateral contract in which the offeree acted upon the offer by performing the terms of the offer, thus creating a binding contract.
	D.	No, because she did not formally notify the company that she was accepting the offer before started performing.

Answer 1

Correct answer is option C. Yes, this was unilateral contract in which the offeree acted upon the offer by performing the terms of the offer, thus creating a binding contract.

The unliteral offer by the auto retailer became a contract once the other party fulfilled the offer by doing the required criteria of record-keeping and inspection procedures. Hence, the female customer has a contractual right to collect the $10,000 as the contract was legally enforceable.