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Ace Ltd placed the following notice in the January edition of its company journal to request help in solving a problem with one of its computer products – the Brag: '£10,000 reward to any employee who can design a solution to the Brag problem before 1 April'.
Cid, who was married to an employee of Ace Ltd, read the journal and thought that he could solve the problem, so started work on it. Ed, employed by Ace Ltd, also saw the advert and decided to work on it. Ed solved the problem, but before he could notify Ace Ltd, the company decided to cancel the Brag product and placed a note in the March edition of its journal cancelling the reward.
Required
(a) Identify whether an offer of reward creates a unilateral or bilateral contract (2 marks)
(b) State whether Cid has any right of action against Ace Ltd for the work that he did in attempting to solve the Brag problem (2 marks)
(c) State whether Ed has any right of action against Ace Ltd for the work that he did in solving the Brag problem
答案:(a) In a unilateral contract, the party whose performance is sought is not obligated to act, but if they do, the offeror is bound to comply with the terms of the agreement. In a bilateral contract both parties are bound by an exchange of promises. The offer of a reward for some kind of performance is therefore a unilateral contract.
(b) The terms of Ace Ltd's offer clearly state that it is open to employees of Ace Ltd only. In general, offers can be made to the world at large, but where they are addressed to a specific group of people then only those within that group can accept them. Therefore Cid has no right to claim anything from Ace Ltd.
(c) Usually an offeror may revoke their offer at any time before acceptance. However this is not the case in unilateral contracts and revocation is not possible once the offeree has begun to perform the task specified in the offer. Ed is an employee and therefore included in the terms of the offer. Ace Ltd is not permitted to revoke the offer and therefore since he solved the problem before the deadline Ed is entitled to the reward.
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