FactsFather bought a house for his son and daughter-in-law. He paid _250 as a down-payment, and put the title of the house in his name. He told his daughter-in-law that if they paid off the remaining mortgage (_500) in weekly instalments, he would transfer the title to them when the house was completely paid for. He died before they paid it all off. The late Father's widow then sued for the house.
IssueDoes the young couple have a contractual right to continue paying instalments, and upon completion of payments, take title of the house? Does their agreement remain binding despite the father's death?
RatioWithin a unilateral contract, there is an implied promise not to revoke once performance has commenced.
The father's promise was a unilateral contract. It could not be revoked by him once the couple entered on performance of the act. As long as the young couple fulfill their side of the contract (continue paying instalments), the contract remains binding, and they will have the property transferred to them once the payments are completed.
This judgement protects the interest of the party who is acting on the promise of the offeror.
HeldJudgement for the Defendant. Appeal dismissed.
IssueDoes the young couple have a contractual right to continue paying instalments, and upon completion of payments, take title of the house? Does their agreement remain binding despite the father's death?
RatioWithin a unilateral contract, there is an implied promise not to revoke once performance has commenced.
The father's promise was a unilateral contract. It could not be revoked by him once the couple entered on performance of the act. As long as the young couple fulfill their side of the contract (continue paying instalments), the contract remains binding, and they will have the property transferred to them once the payments are completed.
This judgement protects the interest of the party who is acting on the promise of the offeror.
HeldJudgement for the Defendant. Appeal dismissed.
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