Davis v. Jacoby

1 Cal. 2d 370 · California Supreme Court · 1934

Facts

Caro and Frank Davis, niece and husband, lived in Canada. Caro's uncle, Rupert Whitehead, facing illness and financial distress, offered them his entire estate if they moved to Piedmont, California, for Frank to manage his affairs and Caro to care for his ailing wife, Blanche. The Davises accepted by letter, promising to come by a specific date, but Mr. Whitehead committed suicide before their arrival. Despite his death, Caro cared for Blanche until her death, but Mr. Whitehead's will left his estate to nephews, not Caro.

Issue

Was Mr. Whitehead's offer for a unilateral contract, requiring full performance for acceptance, or a bilateral contract, accepted by the Davises' promise to perform? Did Mr. Whitehead's death revoke the offer before a valid acceptance occurred?

Holding

The court held that Mr. Whitehead's offer was for a bilateral contract, accepted by the Davises' promise to perform via their letter. Therefore, the contract was formed before Mr. Whitehead's death, and the judgment refusing specific performance was reversed.

Rule

There is a presumption that an offer invites the formation of a bilateral contract, accepted by a promise to perform, rather than a unilateral contract requiring actual performance. This presumption is strengthened when the offeror explicitly requests an immediate reply, indicating a desire for a promise.

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Case brief last reviewed 2026-04-18. Prepared by CaseReader from the published opinion.