Petterson v. Pattberg
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| Petterson v. Pattberg | |
| Court | Court of Appeals of New York |
|---|---|
| Citation | 248 N.Y. 86 161 N.E. 428 (1928) |
| Date decided | 1928 |
Facts: Defendant held mortgage note against Plaintiff's property. Defendant offered to Plaintiff that he would accept a discounted payment in full on the mortgage. Plaintiff went to pay the discounted amount to Defendant. However, Defendant announced he sold the mortgage (before Defendant had a chance to make the payment), and that the offer was no more.
Issue: Can Defendant rescind the offer to accept a reduced mortgage payoff amount before Plaintiff had made the payment?
Holding: Yes--held for Defendant.
Reason: The unilateral offer for a lower payoff amount was not accepted until completed.
Rule:
- To accept a unilateral offer, you must perform the act specified.
- If revocation occurs prior to performance of the act, the power of acceptance of the unilateral contract is terminated.
