Cook v. Coldwell Banker/Frank Laiben Realty Co.

Cook v. Coldwell Banker/Frank Laiben Realty Co.
Missouri Court of Appeals
967 S.W.2d 654 (1998)

Facts: Plaintiff, Cook, worked for the defendant. Defendant announced a bonus program where agents who earned $15k would earn a $500 bonus payable immediately, agents who earned between $15k and $25k would get a 22% bonus, and agents earning above $25k would get a 30% bonus. Bonuses beyond the first $500 would be paid at the end of the year. Later, defendant said that the bonuses would be awarded in March instead (after the year in which the earnings were calculated). Plaintiff left before March but after the end of the bonus year and requested her bonus; defendants denied her.

Procedure: Trial court awarded the defendant's former sales person (plaintiff) damages for a breach of a bonus agreement. Defendant appeals, claiming the plaintiff failed to make a submissible case in that she did not accept the bonus offer before it was revoked.

Issue: Can the defendant revoke its offer in a unilateral contract while the offeree is attempting to accept/perform?

Holding: No.

Reasoning: If the offeree in a unilateral contract performs a significant portion of promised performance, the offer becomes binding (see restatements in text).