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SUMMARY
The Plaintiff bought a Carbolic Smoke Ball and used it as instructed from
November 20, 1891, until January 17, 1892, when she developed the flu,
believing the Defendant's marketing that its product would prevent influenza.
Plaintiff sued to reclaim the 100 euros, which the court determined she was
entitled to. Defendant filed an appeal. This case examines whether an advertising
gimmick (e.g., the promise of a £100 payment to anyone who contracts influenza
while using the Carbolic Smoke Ball) can be regarded an express contractual
commitment to pay.
CASE FACTS
LEGAL
The Court of Appeal held in Carlill v Carbolic Smoke Ball Co, a case that is
frequently cited as a leading case in the common law of contract, that an
advertisement containing specific terms for receiving a reward is considered a
binding unilateral offer that is accepted by anyone who fulfils its terms.
JUDGEMENT
Mrs. Carlill was awarded £ 100 in damages after the appeal was unanimously
dismissed by all three judges. She is currently 96 years old. On March 10, 1942,
she passed away. Her doctor says it's mostly due to her age. One cause, however,
has been identified: influenza. Carbolic Smoke Ball Co. Owner Roe continued to
market aggressively. After losing the lawsuit, he boosted his incentive to 200
euros. However, in this case, the defendant included a deposit of 1000 euros in
CONCLUSION
This is the most commonly referenced case in contract law, particularly in the
context of unilateral contracts. It is a thorough examination of the fundamental
ideas of contract and how they apply in everyday life. In this case, essential
contract aspects such as Offer and Acceptance, Consideration, Intention to Create
Legal Relations, and others were highlighted. This case established Contract Law
as a whole. While sales puffery in advertising is typically not meant to form a
contract with potential product buyers, it did in this case because the Defendant
elevated their words to the level of a promise by relying on their own sincerity.