Story Case

In Coyote, Montana, a handbill to the following effect was posted: $500 reward for the arrest and conviction of the man or men who stole the horse of the undersigned from his stable on the night of Mar. 5.

(Signed) John Hit/up.

A stranger from New York City, Mr. Harry Dur-wand, chanced upon the sign ,and soon after he caused the arrest and conviction of the thief. When he claimed the reward, however, Hilup refused to pay, claiming that he meant the offer to apply only to inhabitants of Coyote County in which the bills were posted.

Durwand immediately brought suit for the reward. Is he entitled to it?

Ruling Court Case. Seymour Vs. Armstrong, Volume 62 Kansas Reports, Page 720; Volume 64 Pacific Reports, Page 612

On February 15, 1896, Armstrong, a commission merchant in Topeka, Kansas, inserted an advertisement containing the following proposition or offer in a weekly newspaper:

"We will pay 10½c for all fresh eggs shipped us to arrive here by February 22. Acceptance of our bid with number of cases stated to be sent by February 20".

On February 20, F. T. Seymour, a rival commission merchant of Topeka, sent the following note to Armstrong in response to the offer of the latter:

"I accept your offer in Merchants' Journal, 10½c for fresh eggs, and will ship you 450 cases fresh eggs to arrive on or before February 22".

On receipt of this note, Armstrong at once notified Seymour that they would not accept the eggs if shipped. Seymour, nevertheless, sent the eggs; Armstrong refused to accept them. Seymour sold the eggs at such price as he could get and brought this action, claiming as damages the difference between the price offered by Armstrong, and the price for which the eggs were later sold.

Armstrong contended that his advertisement was not an offer which could be made binding upon him by a particular acceptance, because it was only a general announcement to the public.

Mr. Justice Johnston said in part:"A contract may originate in an advertisement addressed to the public generally, and, if the proposal be accepted by any one in good faith, without qualifications or conditions, the contract is complete".

It was decided that this was a good offer to the public generally and that an acceptance, according to the terms of the offer, would be binding on Armstrong.

Ruling Law. Story Case Answer

An offer may be made to one particular person, or to a certain class of persons, or it may be made to the public generally. If the offer is made to a particular person, that person only may accept it. If it be made to a class of person, any person in that class may accept it. Where the offer is made to the public generally any one of the public may accept it. One who purports to accept an offer of this kind, must have been aware of the offer when he performed the particular act, which he claims was an acceptance of the offer.

In the Story Case, Durwand should get the reward because he had knowledge of the offer when he caused the arrest and conviction of the thief. Hilup, by wording the bill so that it was an offer to anyone who should read it, disproved his contention concerning the limits of the reward.