First Principles of Business Law

4.13. 'Acceptance' before knowledge of the offer

Read the facts and the question and then choose the best answer.

A publishes an advertisement saying: "I promise to pay $1,000 to anyone who finds a buyer for my house. The money has been deposited in a special bank account."

B, who has not seen the advertisement but who knows that A wants to sell, finds a buyer for A's house. Then, learning of A's advertisement, B says to A: "I found the person who bought your house. I want the $1,000 you promised."

Has B validly accepted A's offer of a reward?

(a) Yes, B has accepted A's offer by conduct: that is, by performing the acts required by A.

(b) No, because B performed the acts required by A without knowing of A's promise.