Story Case

Someone had entered the First National Bank and had scattered papers over the floor and spilled ink. The directors learned that the mischievous son of the president had done it, and, with the consent of the president, and with the purpose of scaring the boy, they inserted the following in the daily newspaper:

"We will pay anyone $50 if he will tell us the name of the desperate robber who broke into the bank last Monday and destroyed valuable papers there.

(Signed) The Directors".

The Pinkerton Agency sent a man to investigate the case. After several days, he discovered that it was the son of the president and so informed the directors. They refused to pay him the reward, on the grounds that the offer was a joke. The Pinkertons sued the bank for $50. May they recover?

Ruling Court Case. Mcclure Vs. Wilson, Volume 50 Illinois Reports, Page 366

At a public meeting, during the Civil War, Wilson declared that he would give four hundred dollars to any man who could promise for his sons a relief from the government draft for soldiers. In reliance upon this offer, McClure was instrumental in securing substitutes, but when he demanded this money, Wilson refused to pay.

Justice Breen gave the opinion of the court:

"It was reasonable for McClure to believe that Wilson made an offer which he intended shall bind him upon acceptance by a third party".

Said the court:"If I have valuable property in imminent danger and I make a proclamation that I will give fifty dollars to save it, and a stranger undertakes the labor and does save it, on what principle of law or justice is it that I should not pay?"

Judgment is given for McClure for the amount promised.

Ruling Law. Story Case Answer

If one person makes an offer without contractual intention, but it is accepted by another who reasonably believes that an offer was intended in a legal manner, a contract will result. The law will not permit a man to say one thing and mean another as against a person who reasonably relies upon the statements as they were uttered and had no knowledge of his secret intention.' In the Story Case, the Pinkerton Detective Agency reasonably believe that the offer of the Directors was real, and intended for a serious purpose. Thus, when it performed the act or services contemplated, it became entitled to the reward, and the Directors, having misled it, cannot say now that they were only jesting. Judgment should be given for the Pinkerton Agency.