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CIMA BA4 · Chapter 10 · Question 6 of 10

A company advertises: 'We will pay a reward to anyone who returns our lost laptop.' Under English law, what type of offer is this, and how is it accepted?

Test yourself: pick an answer

Reveal answer & explanation

Correct answer: B) A unilateral offer, accepted by performing the requested act

Explanation

A reward advertisement is a unilateral offer made to the world, which is accepted by performing the stated act, without the need to communicate acceptance in advance (Carlill v Carbolic Smoke Ball Co). It is not an invitation to treat because the terms are definite and the promisor intends to be bound.

All 10 questions in Chapter 10Law of contract: formation MCQs with answers

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