Scribd
Upload
536 views2 pages

Theme: Offer & Acceptance: Carlill V Carbolic Smoke Ball Co (1892)

This case involved an advertisement by Carbolic Smoke Ball Company that promised to pay £100 to anyone who contracted influenza after using their smoke ball remedy as directed. Mrs. Carlill used the remedy as directed but still contracted influenza, and sued to enforce the promise. The court found that the advertisement constituted a binding unilateral contract, as Carbolic intended to be legally obligated by the promise and Mrs. Carlill provided consideration by using the product as directed. Performance of the specified conditions is both acceptance of a unilateral offer and consideration; no separate notice of acceptance is required. The advertisement's reference to £1000 deposited in a bank showed Carbolic's sincerity in being bound.

Uploaded by

heretostudy
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
536 views2 pages

Theme: Offer & Acceptance: Carlill V Carbolic Smoke Ball Co (1892)

This case involved an advertisement by Carbolic Smoke Ball Company that promised to pay £100 to anyone who contracted influenza after using their smoke ball remedy as directed. Mrs. Carlill used the remedy as directed but still contracted influenza, and sued to enforce the promise. The court found that the advertisement constituted a binding unilateral contract, as Carbolic intended to be legally obligated by the promise and Mrs. Carlill provided consideration by using the product as directed. Performance of the specified conditions is both acceptance of a unilateral offer and consideration; no separate notice of acceptance is required. The advertisement's reference to £1000 deposited in a bank showed Carbolic's sincerity in being bound.

Uploaded by

heretostudy
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Theme: Offer & Acceptance

Carlill v Carbolic Smoke Ball Co [1892]


Theme: General proposal, unilateral contract, consideration, intention to create legal
obligation, 
 Facts:
• Carbolic Smoke Ball Co (def) promises in ad to pay 100 pounds to any person
who contracts flu after using smoke ball.
• Carbolic also says “1000 is deposited with the Alliance Bank, shewing our
sincerity in
the matter” in ad.
• Carlill (plaintiff) uses ball but contracts flu + relies on ad.

 Issue: Was there a binding contract between the parties?


1. A contract requires notification of acceptance – Did Mrs Carlill notify
Carbolic of the acceptance of the offer?
2.  Did Mrs Carlill provide consideration in exchange for the 100 pounds
reward?
b. Arguments:
Def: There was no binding contract – the words of the ad did not amount to a
promise b/c:
• the ad was too vague to make a contract – there was no limit as to time &
no means of checking use of the ball by
consumers;
• the terms are too vague to make a contract- no limit as to time – a person
might claim they contracted flu 10 yrs after
using the remedy
• No contract b/c a contract requires communication of intention to accept
the offer or performance of some overt act
Plaintiff: ad was an offer they were under an obligation to fulfill because it was
published so it would be read and
acted upon & it was not an empty boast.
• The promise was not vague - & there was consideration.
 Held: There was a binding contract. Carlill successful.
The ad was an express promise – to pay 100 pounds to anyone who contracts flu
after using the ball three times
daily x 2 weeks.
• The ad was not a mere puff: b/c of this statement “1000 is deposited with
the Alliance Bank, shewing our sincerity in
the matter” – proof of sincerity to pay
• Promise is binding even though not made to anyone in particular – a
unilateral offer – ie. “offers to anybody who performs the conditions named
in the advertisement, and anybody who does perform the condition accepts
the offer”. An offer can be made to the whole world – and will ripen into a
contract with anybody who comes forward and performs the condition.
• The ad is not so vague that it cannot be construed as a promise – the
words can be reasonably construed. For example, if you use the remedy for
two weeks, you will not contract the flu within a reasonable time after that.
• Notification of acceptance - There is no need for notification of
acceptance of the offer.  An inference should be drawn from the transaction
itself that if he performs the condition, there is no need for notification.

• Consideration: There was consideration in this case for two reasons:


1. Carbolic received a benefit ie. In the sales directly beneficial to them by
advertising the Carbolic Smoke Ball
2. The direct inconvenience (and detriment) to the person who uses the
smoke ball 3 times a day x 2 weeks according
to the directions at the request of Carbolic  in other words: performance of
the specified conditions constitutes
consideration for the promise.

 In unilateral contracts, communication of acceptance is not expected or


necessary.
 If there is an offer to the world at large, and that offer does not expressly or
impliedly require notification of performance, performance of the specified
condition in the offer will constitute acceptance of the offer and consideration for
the promise.
 Statements made in an advertisement may be a mere “puff” and not intended to be
legally binding. If the advertisement shows a clear promissory intention to be
legally bound, it may constitute a unilateral offer.

You might also like