The FBI posted a flyer on all American Airlines. The flyer indicated, “The Federal Government will pay $500,000 to any person providing information leading to the arrest of any airline customer, transporting drugs while riding on the plane. ” Mary decides to take American Airlines to visit her grandmother. While standing in line to use the bathroom, she notices another customer opening the overhead bin and removing a carry-on luggage that appeared to be filled with drugs. When she arrived at her grandmother’s house she called the FBI and reported the incident. After an investigation, the FBI confirmed that drugs were being transported. They tracked down the customer and arrested him for illegal possession and transportation of drugs. Mary contacts the FBI and requests $500,000. She claims a contract was created and it would be a breach of contract to deny her the money. The FBI refuses to pay citing there is no contract. Please answer the questions below. One page is required.
What are the four elements of a valid contract. Please identify each element and provide a definition of each element.
Apply the facts to the elements to decide whether there is a valid contract. Discuss whether a contract was created in the above scenario.
Will the FBI be required to pay the $500,000 to Mary.
