Story Case

Horace Falk, a private detective, saw a face in a crowd of people which he had seen in the Rogues' Gallery and had recognized as that of a man"wanted" for a bank robbery committed in 1915. He caused the man's arrest and when he later learned that a reward of $100 was offered by the Bankers' Protective Association for the capture of bank robbers, he applied for the reward. The association refused to pay the $100 on the ground that, as no knowledge of the reward had reached Falk before making the arrest, there had been no offer to him, because communication of the offer is one of the essentials of an offer.

Falk replied that he had accomplished the result desired and that he was therefore entitled to the reward. Should he have it?

Ruling Court Case. Ball Vs. Newton, Volume 61 Massachusetts Reports, Page 599

Horace Newton and Joseph Battles signed the following paper:

"Worcester, Jan. 19, 1847. For value received, we jointly and severally promise to pay the master's, clerk's, messenger's and assignee's fees, respectively, in the case of Joseph Battles, an insolvent debtor; provided the same are not paid within six months.

Joseph Battles.

Horace Newton".

Shortly after the above paper was signed, Joseph Battles went into insolvency. Ebeneezer Ball was chosen as his assignee. After Ball had done everything necessary to close up the affairs of Battles, this paper came to his notice. He thereupon demanded of Newton compensation for his services, since he had not otherwise been paid within six months after their rendition. Newton refused to pay anything under the agreement. After his death this suit was brought against the defendant, Newton, the personal representative of Horace Newton, deceased.

On behalf of Newton it was urged that Ball had no rights under the signed agreement because he was not aware of its existence until after he had rendered the services in question.

Decision

There was no contract between Ball and Newton. Although Newton offered in writing to pay for just such services, this offer was never communicated to Ball until he had performed the duties. If this paper had been shown to Ball, and he had accepted the offer, and had become assignee, and had performed the services upon the strength of the offer, there would have been a contract. But before an offer can be accepted, it must first have been communicated to the offeree.

Judgment was therefore given for the defendant, Newton.

Ruling Law. Story Case Answer

It has been stated before, that the making of an offer is the first step by which contracting parties come together. It is an expression on the part of one of a willingness and a desire to assume a contractual relation. No contract will result, unless the person to whom the offer has been made, expresses his willingness and desire to accept the offer. It is evident that an offer cannot be accepted until it has been communicated to some one who may claim the benefit of the acceptance. The mere fact that a person accidentally performs some act which is in accordance with an unknown offer does not entitle that person to claim the benefit of the offer. This frequently happens in cases where a reward is offered for the apprehension of a criminal. Some person, who is not aware of the offer, captures the criminal; but he is not legally entitled to the reward; he did not know of the offer, and could, therefore, not accept it. Hence, in the Story Case, Falk cannot obtain the reward.