Question

Principle: Proposal (communication) + Acceptance (communication) + Consideration = Contract. The communication of a proposal is complete when it comes to the knowledge of the person to whom it is made.
Facts: X’s nephew absconded from home. He sent his servant in search of the boy. After the servant had left, X by handbills offered to pay Rs. 501 to anybody finding his nephew. The servant came to know of this offer only after he had already traced the missing child. He brought an action to recover the reward.

• A. His action would fail because he was not aware of the offer
• B. His action would not fail because it was a general offer
• C. The fact that he was not aware of the offer does not make any difference and hence it was a valid contract. It is a mere formality
• D. None of the above

Hint:

To claim a reward based on a general offer, the claimant must know about the offer before performing the act.

Answer 1

The Correct Option is A

A valid acceptance requires knowledge of the offer at the time of performing the act. Since the servant found the boy without being aware of the reward offer, there was no consensus ad idem (meeting of minds), and thus no valid contract for claiming the reward.