Lalman Shukla v Gauri Dutt (1913) 11 ALJ 489
Reward offers need knowledge of the offer — a simple, student-first explainer with timeline, IRAC, mnemonics, and FAQs.
 
    Table of Contents
Quick Summary
Gauri Dutt’s nephew went missing. Her servant, Lalman, was sent to search. After he left, a reward was publicly announced. Lalman found the boy but did not know about the reward at that time. He later claimed it. The court held: no knowledge, no acceptance; hence no contract and no reward.
Issues
- Could Lalman claim the reward without knowing about it?
- Was there any contract between Lalman and Gauri?
Rules
Knowledge + Assent
A proposal becomes an enforceable agreement only when the offeree knows it and assents to it.
Pre-existing Duty
Doing what one is already bound to do (servant’s duty) is not fresh consideration for a reward.
Facts (Timeline)
 
          Arguments
Appellant (Lalman Shukla)
- He performed the required act by finding the boy.
- Therefore the reward should be payable.
Respondent (Gauri Dutt)
- Lalman had no knowledge of the offer when acting.
- His work flowed from a pre-existing duty as a servant.
- Hence there was no contract and no consideration.
Judgment
 
          Held: For Gauri Dutt. Since Lalman did not know of the reward when he found the boy, he could not accept the offer. Also, his act arose from a pre-existing duty. No enforceable contract existed.
Result: Reward not payable; suit dismissed.
Ratio Decidendi
An offer of reward can be accepted only by a person who knows of the offer and acts with that assent. Mere performance without knowledge does not form a contract; nor does doing what one is already bound to do.
Why It Matters
- Clarifies reward and unilateral offers in Indian contract law.
- Emphasises communication and intention in forming agreements.
- Shows limits where pre-existing duty is involved.
Key Takeaways
- No knowledge → no acceptance → no contract.
- Reward claims fail if the act was a pre-existing duty.
- Offers must be communicated before performance.
Mnemonic + 3-Step Hook
Mnemonic: “Know, Nod, Then Next.”
- Know: Hear the offer.
- Nod: Assent to it.
- Next: Do the act → contract binds.
IRAC Outline
Issue
Can someone claim a reward without knowing of the offer? Was any contract formed?
Rule
Knowledge and assent to the proposal are essential; pre-existing duty is not fresh consideration.
Application
Lalman acted without knowledge of the reward and under duty to his master; no acceptance or consideration.
Conclusion
No contract; reward not payable; suit fails.
Glossary
- Offer (Proposal)
- A statement showing intent to be bound if accepted.
- Acceptance
- Assent to the offer, made with knowledge of it.
- Unilateral Contract
- A promise in return for an act (e.g., reward cases).
- Pre-existing Duty
- A duty already owed; not fresh consideration for a new promise.
FAQs
Related Cases
R v Clarke
Knowledge of OfferAustralian case: informer acted without knowledge of reward → no contract.
Carlill v Carbolic Smoke Ball
Unilateral OfferWhen an offer is known and performed as required, contract forms.
Gibbons v Proctor
Reward NoticeDiscusses timing of knowledge in reward claims.
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