1 Rocky Mountain Races Inc sponsors the Pioneer Trail Ultram

#1 Rocky Mountain Races, Inc., sponsors the “Pioneer Trail Ultramarathon,” with an advertised first prize of $10,000. The rules require the competitors to run 100 miles from the floor of Blackwater Canyon to the top of Pinnacle Mountain. The rules also provide that Rocky reserves the right to change the terms of the race at any time. Monica enters the race and is declared the winner. Rocky offers her a prize of $1,000 instead of $10,000. Did Rocky and Monica have a contract?

#2 Janine was hospitalized with severe abdominal pain and placed in an intensive care unit. Her doctor told hospital personnel to order around-the-clock nursing care for Janine. At the hospital’s request, a nursing services firm, Nursing Services Unlimited, provided two weeks of in-hospital care and, after Janine was sent home, two additional weeks of at-home care. During the at-home period of care, Janine was fully aware that she was receiving the benefit of the nursing services. Nursing Services later billed Janine $4,000 for the nursing care, but Janine refused to pay on the ground that she had never contracted for the services, either orally or in writing. In view of the fact that no express contract was ever formed, can Nursing Services recover the $4,000 from Janine? If so, under what legal theory?

Solution

#1) Solution:

YES, Rocky and Monica have a contract. In the given scenario, the courts have historically treated contests as unilateral contacts. Unilateral contracts occur when an offer is phrased so that the offeree can accept the offer only with the completion of the contract performance. The contract is created when an individual complies with the rules of an offer. In this case problem, Rocky Mountain Races promised the winner an amount of $10,000 upon the race completion. Since promise has been established and the performance has been completed, thus a contract has been formed. Even though Rocky Mountain Racers holds the right to change the terms at any time, however these cannot be changed after the offer has been accepted. Thus Rocky and Monica have a unilateral contract