Question:

Legal Principles:
1. Offer is a proposal made by one person to another to do an act or abstain from doing it. The person who makes the offer is known as the promisor or offeror and the person to whom an offer is made is known as the promisee or the offeree.
2. A contract comes into being by the acceptance of an offer. When the person to whom the offer is made signifies his consent thereto, the proposal is said to be accepted and the parties are at consensus ad idem regarding the terms of the agreement.
Facts: In Dec. 2019, a convicted murderer who was sentenced to death escaped from the custody of Ramesh, a prison official. Ramesh later offered a reward of INR 50,000 to anyone who captured the fugitive and returned him to the authorities. In Jan. 2020, without knowledge or notice of the reward, Sunil captured the fugitive and took him to Ramesh's jail house. Ramesh refused Sunil's demands for the reward money. Sunil filed a case against Ramesh to recover the reward. Ramesh alleges that there is no contract between Ramesh and Sunil.

  • A mere offer or promise to pay did not give rise to a contract. Rather, the assent or meeting of two minds gave rise to a contract, and therefore it was not complete until the offer was accepted. Having notice or knowledge of the existence of the reward when he captured the fugitive is essential to his right to recover the reward offered by Ramesh.
  • The act of capturing the fugitive was acceptance of the offer of reward through conduct and so a valid contract is entered upon.
  • There was an offer by Ramesh and acceptance by Sunil and it is immaterial whether Sunil had notice or knowledge of the existence of the reward when he captured the fugitive.
  • Such an offer, like the reward here, could be accepted by anyone who performs the service called for, when the acceptor knows that it has been made and acts in performance of it.
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The Correct Option is A

Solution and Explanation

The correct option is (A):A mere offer or promise to pay did not give rise to a contract. Rather, the assent or meeting of two minds gave rise to a contract, and therefore it was not complete until the offer was accepted. Having notice or knowledge of the existence of the reward when he captured the fugitive is essential to his right to recover the reward offered by Ramesh..
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