Summary of Marchiondo v. Scheck
S. Ct. N. Mexico, 1967
Relevant Facts: Df in a writing offered to sell real estate to a buyer and agreed to pay a % to a broker. The offer fixed a six day time limit for acceptance. Df in writing revoked the offer. The revocation was received by the broker on the morning of the sixth day. Later that day the broker obtained the acceptance of the offeree.
Legal Issue(s): Whether the offeror had the right rather than the power to revoke his offer to under a unilateral contract?
Court’s Holding: Not if partial performance was rendered.
Procedure: Pl claimed breach, and trial ct. dismissed. Remanded for further findings.
Law or Rule(s): Partial performance of the consideration may make such an offer irrevocable and where the broker manifests his assent to the offer, by entering upon performance the offer becomes irrevocable during the time stated and binding upon the principal under the terms.
Court Rationale: Df offer did not specifically state whether it was exclusive or not, and it is not the exclusivity that gives the offeror the right to revoke. It is the offeree’s action. Until there is action by the offeree, exampled by partial performance, the offeror may revoke, even if it is exclusive.
If part performance by the offeree of an offer of a unilateral K then a K with a condition results. The condition here would be full performance. Df right to revoke depends on whether PL had partially performed before receipt of Df’s revocation.
Plaintiff’s Argument: Pl accepted by partial performance within the period of time specified.
Defendant’s Argument: The revocation was tendered prior to any partial performance of the terms.