New York Real Estate Salesperson ExaminationContractsHard
A property owner offers a reward of $5,000 to anyone who finds their lost dog. A neighbor, unaware of the reward, finds the dog and returns it to the owner. After returning the dog, the neighbor learns about the reward and attempts to claim it. Is the owner legally obligated to pay the reward?
- ANo, because the neighbor had no prior expectation of payment.
- BYes, because the owner's offer was publicly broadcast.
- CNo, because the neighbor was unaware of the offer when performing the act.
- DYes, because the neighbor performed the requested act.
Show answer & explanationAnswer & explanation
Correct answer: C. No, because the neighbor was unaware of the offer when performing the act.
For a unilateral contract to be formed, the offeree must perform the requested act with knowledge of the offer. If the act is performed without knowledge of the offer, there is no meeting of the minds and thus no contract.
Why the other options are wrong
- A. While true, the primary legal reason is the lack of knowledge of the offer, not the expectation of payment itself.
- B. Public broadcast makes the offer valid, but acceptance still requires knowledge of it.
- D. Performance alone is insufficient; knowledge of the offer is also required for acceptance.
Knowledge of Offer for Acceptance
For a valid acceptance, especially in unilateral contracts, the offeree must have knowledge of the offer's existence and terms prior to performing the requested act.
- Essential for 'meeting of the minds'.
- Without knowledge, no intent to accept.
- Applies to both unilateral and bilateral contracts.
Memory trick: To accept, you must 'Know It and Show It' – know the offer, then perform/promise.