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CA Foundation · Business Laws · The Indian Contract Act, 1872

Tina lost her pet dog and published a notice offering Rs 5,000 to anyone who finds and returns it. Umesh found the dog and returned it, without having seen the notice. Later he claims the reward. What is the position?

Umesh cannot claim the reward. A general offer is accepted by performing the required act, but the person must know of the offer and act on it. Since Umesh had not seen the notice, there was no acceptance and no contract.

  1. AUmesh cannot claim, because he acted without knowing of the offer, so there was no acceptanceCorrect
  2. BUmesh can claim, because returning the dog is an act within the offer and knowledge is not required
  3. CUmesh can claim only half the reward as compensation for his effort
  4. DUmesh can claim only if he informs Tina before returning the dog

Explanation

Acceptance of a general offer is made by performing the stipulated act, but the performer must know of the offer and act in reliance on it. Umesh did not know of the notice, so he did not accept and cannot claim the reward. The option allowing a claim fails because performance without knowledge is not acceptance.

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