Question

Jane found a dog that appeared lost and decided to take it home. The next day her flatmate told her that the dog actually belonged to his friend, Ted. Jane let her flatmate return the dog to Ted. Two days later Jane noticed an advertisement at the supermarket offering a reward for a lost dog. She recognized the dog as the one she found and let her flatmate return to Ted. She phoned Ted to claim the reward. Ted acknowledged that that he put up the advertisement and that he has now had his dog returned to him.

Which of the following TWO statements are CORRECT.

Group of answer choices

1) Jane is not entitled to the reward as the advertisement is actually an invitation to treat as explained in Carlill v Carbolic Smoke Ball Co.

2) Ted's advertisement was an offer to the world.

3) Ted has to pay the reward to Jane because she has returned his dog.

4) Jane is not entitled to the reward because there is no intention to create a legally binding contract as was argued in Carlill v Carbolic Smoke Ball Co. .

5) Jane is entitled to the reward but has to share it with her flatmate because they both, in effect, found the dog.

6) Jane is not entitled to the reward because when the dog was returned she was not aware of the advertisement.

Answer 1

2) Ted's advertisement was an offer to the world.

3) Ted has to pay the reward to Jane because she has returned his dog

These two options are correct because generally an adverisement is considered invitation to treat but if advertisement involves reward then it becomes an offer.

The advertisement by ted to reward to person who find and return the lost dog to him was unilateral contract with offer to the world or who reads the advertisement and perform what is said in advertisement.

Jane returned the dog to ted even she notices the advertisement after but she perform the unilateral contract and call for claim on reward.