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Name : Kadek Novia Karismayanthi

Student Id : 012022090842

1. Facts of the Case


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.

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