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Tam lost his wireless airpods in the campus. He advertised online and near the campus, a reward of $50 to who returns the lost earphones.

Sania found them and went to return it. But next day she saw the advertisement and claim the reward. Advise Tam.

Rohit Gupta
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4 Answers4

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Sania is entitled to a reward of 7,50€.

In Germany, to reward honest finders, the finder of an item is entitled to 5% of a lost item's value of up to 500€ under § 971 BGB. Airpods cost about 150 €, so Sania is entitled to a Fider's reward of 7,50 €. Anything more would be at the discretion of Tam, accepting less is at Sania's discretion.

Do note, that denial of the finder's reward at the moment that Sania hands over the item means, that they also deny their entitlement to the reward. In fact, it is upon Sania to demand the reward, and unless they do so, it is presumed that they do not want a finder's reward.

However in making her entitlement to the reward known, Sania may not cross the line into coercion or blackmail (§§ 240, 253 StGB). Should Sania say, without explanation "I demand a payment of 100 € for the airpods", that could be coercion, as she is not entitled to that. If she however says "I am entitled to finder's reward of 7,50 €, and had expenses of 2.50 € to get the phone to you, therefore you owe me 10 €" the picture is different - that is exactly the amount that the law says she would be owed. This is because atop the actual reward Sania can reclaim reasonable fees, such as the bus fare to get the phone to Tam under § 970 BGB. Under § 972 BGB, Sania does not have to relinquish the item till the reward and expenses have been paid but also does not become the owner of the item.

The Fundbüro

To evade a possible claim for "Unterschlagung von Fundsachen" (~conversion by not reporting a found item), the Fundbüro (Found item's office) exists when the owner can't be made out rapidly. Not only does it calculate the required finder's reward, but also handing it over to the office fulfills the requirement to report a found item that is worth more than 10 € under § 965 BGB. It is customary to store the lost items at the Fundbüro, but that is not required.

To gain the item from the Fundbüro, Tam will have to pay any required handling fees to the office but also gets notice of how much he should pay to Sania as well as her contact details. Sania will get contact details of Tam in return, together with a notice that she has a claim to a reward of such value. Should Sania not have given her details, it is presumed that she did not want the finder's reward.

If Sania retained the item, the Fundbüro will inform Tam of the estimated finder's reward and contact details for Sania, so Tam can reclaim the item.

Trish
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Sania is not entitled to the reward

This is very much contract law 101.

Tam made an offer to the world that was acceptable by performance: return my airpods and we have a contract.

However, Sania did not see the ad and was therefore not returning the AirPods in response to the offer. Acceptance of an offer requires knowledge of the offer. Therefore, there is no contact and Tam is under no obligation to provide Sania with anything, not even a thank you.

Dale M
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  • unless contract law does not apply and statutory prescribed rewards exist. – Trish Aug 04 '23 at 12:02
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    It is possible to accept and be bound to a contract without full knowledge of what it constitutes - "I didn't read/understand it" is not a valid way to get out of a written contract. How is this different from other types of binding contracts where one party doesn't read what the other is offering before agreeing and fulfilling their part? – Nuclear Hoagie Aug 04 '23 at 12:54
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    @NuclearHoagie It's different because in the case of buying a car without reading all the documents, the buyer is aware that the seller is offering the car on the terms laid out in the contract. The buyer can choose to accept the offer after reading, or accept the offer without reading. In either case, the buyer has agreed to the terms laid out in the contract. Here, Sania wasn’t responding to an offer, she was returning the headphone gratuitously. – bdb484 Aug 04 '23 at 19:03
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See Williams v Carwardine (1833), 5 Car & P 566, 172 ER 1101, aff'd 4 B & Ad 621, 110 ER 590 (KB).

  • Police were investigating a suspected murder and the brother of the deceased publicly distributed a notice offering £20 for "such information as may lead to a discovery of the murder of the said Walter Carwardine."
  • Mary Williams gave a statement to police that led to the eventual conviction of William Williams for the murder.
  • However, the reason Mary gave the statement was because William severely beat her and "being apprehensive of death, she made a disclosure." The common assumption is that William suspected that Mary knew something of the murder, because she had been deposed for an unsuccessful first prosecution against some other suspects.

The defendant in the contract suit did not want to pay the £20. He argued that Mary did not make the disclosure because of the reward. The trial judge put it to the jury whether Mary was induced by the handbill. They found that "she did not give that information for the sake of the £20 reward, nor in consequence of the handbill, but from stings of conscience." The judge still ordered the £20 to be paid.

On application for a new trial ((1833) 4 B & Ad 621, 110 ER 590 (KB)) the judges noted the finding from the lower court that the plaintiff "was not induced by the offer of the reward, but by other motives." Denman C.J. asked "Was any doubt suggested as to whether the plaintiff knew of the handbill at the time of her making the disclosure?" The answer: "She must have known of it, as it was placarded all over Hereford, the place at which she lived": (1833) 5 C & P.

The judges agreed with the trial judge ((1833) 4 B & Ad 621, 110 ER 590 (KB)):

  • Denman C.J.: "The plaintiff, by having given information which led to the conviction of the murderer ... has brought herself within the terms of the advertisement, and therefore is entitled to recover."
  • Littledale J.: "The advertisement amounts to a general promise, to give a sum of money to any person who shall give information which might lead to the discovery of the offender. The plaintiff gave that information."
  • Parke J.: "There was a contract with any person who performed the condition mentioned in the advertisement."
  • Patteson J.: "I am of the same opinion. We cannot go into the plaintiff's motives."

Acceptance does not require subjective knowledge of the offer. "Meeting of the minds" is an objective standard.

Jen
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I am not a real lawyer, but I will pretend to be one for fun.

Tam, I have reviewed your case and I have some bad news for you. You may have to pay the reward of $50 to Ms. Sania, who returned your lost airpods. Here is why:

  • According to contract law, a reward offer is a unilateral contract, which means that it is a contract created by an offer that can only be accepted by performance². In other words, you made a promise to pay $50 to anyone who performs the act of returning your airpods, and Ms. Sania accepted your offer by doing so.
  • It does not matter that Ms. Sania did not know about your reward offer when she returned your airpods. As long as she performed the act that you requested, she is entitled to the reward. This is based on the legal principle of constructive notice, which means that a person is deemed to have notice of something if it is reasonably available to them¹. Since you advertised online and near the campus, Ms. Sania could have easily seen or heard about your reward offer, and therefore she had constructive notice of it.
  • You cannot withdraw your reward offer after Ms. Sania performed the act of returning your airpods. Contract law creates a duty of good faith, therefore, the offer may not be withdrawn arbitrarily to avoid payment³. Once Ms. Sania completed the performance, the contract was formed and you became obligated to pay her the reward.
  • The only way you could avoid paying the reward is if you can prove that your offer was against public policy or illegal³. For example, if you offered a reward for someone to commit a crime or harm someone else, that would be invalid and unenforceable. However, in your case, there is nothing illegal or immoral about offering a reward for the return of lost property, so this argument will not work.

Therefore, Tam, I advise you to pay Ms. Sania the $50 reward as soon as possible. Otherwise, you may face legal action from her for breach of contract, and you may have to pay more in damages and legal fees. I hope this helps you understand your situation better. If you have any questions, please let me know.

Source: Conversation with Bing, 8/6/2023 (1) Unilateral Contract - US Law | LII / Legal Information Institute. https://www.law.cornell.edu/wex/unilateral_contract. (2) Prizes and Rewards | Foundational Principles of Contract Law | Oxford .... https://academic.oup.com/book/11597/chapter/160477510. (3) Rewards Law and Legal Definition | USLegal, Inc.. https://definitions.uslegal.com/r/rewards/. (4) Unilateral Contract - Offeror, Offeree, Promise, and Party - JRank. https://law.jrank.org/pages/11000/Unilateral-Contract.html. (5) undefined. https://doi.org/10.1093/oso/9780199731404.003.0034.