On Sunday, October 6, 1974, the Leweiston Lodge of Elks sponsored a golf tournament at the Fairlawn Country Club in Poland, Maine. For promotional purposes, Marcel Motors, an automobile dealership, agreed to give any golfer who shot a hole-in-one a new 1974 Dodge Colt. Fliers advertising the tournament were posted in the Elks Club and sent to potential participants. On the day of the tournament, the 1974 Dodge Colt was parked near the clubhouse, with one of the posters conspicuously displayed on it. Alphee Chenard, Jr., who had seen the promotional literature regarding the hole-in-one offer, registered for the tournament and paid the requisite entrance fee. While playing the thirteenth hole of the golf course, in the presence of the other members of his foursome, Chenard shot a hole-in-one. When Marcel Motors refused to tender the automobile, Chenard sued for breach of contract. [Chenard v. Marcel Motors, 387 A.2d 596, 1978 Me. Lexis 911 (Maine 1978)]

Question Completion:

1. Was the contract a bilateral or a unilateral contract?

2. Does Chenard win?

3. Is it ethical for Marcel Motors to refuse to give the automobile to Chenard?

Answer:

Chenard v. Marcel Motors, 387 A.2d 596, 1978 Me. Lexis 911 (Maine 1978)

1. A unilateral contract existed when Marcel Motors made the offer to any golfer who shot a hole-in-one for a new 1974 Dodge Colt.

2. Chenard wins.  Marcel Motors is obliged to supply him with the new 1974 Dodge Colt as promised because Chenard completed the stated task by shooting a hole-in-one.  Chenard wins, not because of his fee or participation in the golf tournament, he wins because Marcel Motors is obliged to fulfill its promise.

3. It is not ethical for Marcel Motors to refuse to give the automobile to Chenard.  It was not forced to make the promise.  No excuse, including illegality under gambling, could not exonerate it from its obligation to fulfill its promise.

Explanation:

According to the law, a unilateral contract is a contract agreement in which, for example, Marcel Motors promised to offer a new 1974 Dodge Colt to a golfer after the golfer had shot a hole-in-one.  In this unilateral contract, the offeror (Marcel Motors) was the only party with a contractual obligation. Unilateral contracts are primarily one-sided but remain very legal.

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