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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 (2 marks)
(Total = 6 marks)