Answer : • The Defendant made an advertisement in the newspaper that they would offer a sum of money to anyone who would still suffer from influenza after using their product. The Plaintiff used the product according to the instruction, but still became ill. Defendant refused to pay. • Carlill v Carbolic Smoke Ball Company [1892] EWCA Civ 1 is an English contract law decision by the Court of Appeal, which held an advertisement containing certain terms to get a reward constituted a binding unilateral offer that could be accepted by anyone who performed its terms.
2. Principle of the Case :
What is the principle in Carlill v carbolic smoke ball? Answer : • In Carlill v Carbolic Smoke Ball Co, a decision often cited as a leading case in the common law of contract, the Court of Appeal held that an advertisement containing particular terms to get a reward is considered a binding unilateral offer that is accepted by anyone who completes its terms. • Invitation to treat refers to merely inducement to the general public so that they will come forward to make an offer. invitation to treat is not an offer but merely providing information to the public. • Although as a general rule communication of acceptance is required, the offeror may dispense with the need for notification and has done so in this case. Here, it was implicit that the offeree (Mrs Carlill) did not need to communicate an intention to accept; rather acceptance occurred through performance of the requested acts (using the smoke ball). • There was consideration; the inconvenience suffered by Mrs Carlill in using the smokeball as directed was sufficient consideration. In addition, the Carbolic Smoke Ball received a benefit in having people use the smoke ball. • Mrs Carlill was entitled to the reward. There was a unilateral contract comprising the offer (by advertisement) of the Carbolic Smoke Ball company and the acceptance by performance of conditions stated in the offer) by Mrs Carlill.
3. Judgement by the court
Answer : • Emphasised the significance of offer and acceptance in contract law; distinguishes between offers and invitations to treat.