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, therefore, brought an action to recover the reward.

Show Hint

Put the events on a timeline. The handbills came out after the servant left, and he learned of them only after he had already found the boy. Then ask whether he could have accepted an offer he did not know about.
Updated On: Jul 17, 2026
  • His action would fail because he was not aware of the offer
  • His action would not fail because it was a general offer
  • 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
  • None of these
Show Solution
collegedunia
Verified By Collegedunia

The Correct Option is A

Solution and Explanation

Step 1: Understanding the Question:
The servant was already out searching when X put up handbills promising Rs. 501 to whoever found the boy. The servant found the boy first and heard about the reward only afterwards. He now sues for the Rs. 501.

Step 2: Key Formula or Approach:
The Principle gives an equation and then a timing rule.
The equation says a contract needs a communicated proposal, a communicated acceptance and consideration. Every element must be there.
The timing rule says communication of a proposal is complete only when it comes to the knowledge of the person to whom it is made. So a proposal that has not reached a person's mind has not been communicated to him at all, however loudly it may have been published to the world.
Put the two together and you get the order in which things must happen. Knowledge of the proposal must come first, and only then can there be an acceptance of it.

Step 3: Detailed Explanation:
Build a timeline from the facts. First the servant leaves to search. Then X issues the handbills. Then the servant traces the boy. Only after that does the servant learn of the reward.
Now test each element against that timeline.
Was the proposal communicated to the servant before he acted? No. At the moment he was searching and finding, the offer had not come to his knowledge, so as against him the communication was not complete.
Was there an acceptance? An acceptance is a response to a known proposal. You cannot respond to something you have never heard of. The servant's search was done in performance of his duty as a servant, not in answer to an offer he did not know existed. So there was no acceptance.
With no communicated proposal and no acceptance, the equation in the Principle does not close. There is no contract, so there is nothing for the servant to sue on. His action fails.

Step 4: Checking the wrong options:
Option (B) relies on the offer being a general one. It is true that a general offer can be accepted by anyone who performs the act, but that person must still know of the offer when he performs. Being general changes who may accept, not the requirement of knowledge.
Option (C) says knowledge makes no difference and calls it a mere formality. That contradicts the Principle head on, which makes knowledge the very thing that completes communication.
Option (D) is unnecessary once option (A) fits.

Step 5: Final Answer:
The servant could not accept an offer he had never heard of, so his action fails. That is option (A).
Was this answer helpful?
0
0

Top CLAT Legal Studies Questions

View More Questions

Top CLAT Contract Law Questions

View More Questions

Top CLAT Questions

View More Questions