R v Clark (1927) 40 C.L.R. 227

In order to create a contract it is necessary to act in reliance upon the promises when accepting it.

Court: High Court of Australia

Judge(s) sitting: Isaacs ACJ, Higgins, Starke JJ

Fact

Crown had offered a reward of £1000 for information leading to conviction of murderers of 2 policemen. The government also promised that a pardon might be available to any accomplice giving required information. Clarke was under suspicion of the murder by crown. After his arrest he panicked and provided the information required in order to reduce his own sentence, forgetting, at the time, about the reward. Government refused to pay the reward.

Issue

Was there a contract between Clarke and the Crown?

Judgment

It was held that he was not entitled to the £1000 reward, as Mr. Clarke did not act “in reliance upon the offer or with the intention of entering into any contract”. He had no intention to claim the reward at the time of providing the information, therefore, he did not accept the offer.

The court ruled further than not only was a contract not formed, but Clarke had not fulfilled the terms of the contract, the information should lead to arrest and conviction of two murderers but one of the murderers was arrested before Clark give the information.

Note: The present case suggests that if the offeree knew of the offer in the past but has forgotten about it, they are treated as never having known about it.