Contract; formation; agreement; acceptance by conduct.
Facts: The West Australian Government offered a reward of £1,000 for information leading to the capture and conviction of a murderer of two policemen. The notice also stated that a free pardon would be granted to any accomplice who gave information as long as they were not the person who actually committed or participated in the murders. Clarke and another person were arrested and charged with the murders. Shortly after his arrest and anxious to prove his innocence, Clarke gave information which led to the arrest of a third person. This information led to the arrest of a third person. The other two arrested men were subsequently convicted of murdering the policemen. Clarke was released without being charged. He then applied for the reward, claiming that he had accepted the offer of the reward by giving information to the police.
Issue: Was giving the relevant information an act by Clarke which amounted to a valid acceptance of the offer to pay a reward?
Decision: The High Court held that Clarke was not entitled to the reward.
Reason: The court found that Clarke gave the information only after he was arrested, and only to clear himself of a charge of murder. He did not act on reliance of the offer of the reward, and at the time he gave the information the reward was not in his mind. Higgins J stated (at 241):
"There cannot be assent without knowledge of the offer; and ignorance of the offer is the same thing whether it is due to never hearing of it or to forgetting it after hearing."