Question

What was Carlill v Carbolic Smoke Ball Company (1892)?

Answer 1

Carlill v Carbolic Smoke Ball Company (1892) was a significant English contract law case that established the principles of unilateral contracts and the concept of an offer made to the world at large. The case involved a company called the Carbolic Smoke Ball Company, which manufactured and sold a product called the "Carbolic Smoke Ball" claimed to be a cure for various ailments, including influenza. The company advertised that it would pay £100 to anyone who contracted influenza after using their product as directed for a specified period. The advertisement stated that a deposit of £1000 was made with the Alliance Bank to show their sincerity in the matter. Mrs. Carlill, a consumer, purchased and used the smoke ball but still contracted influenza. She sued the Carbolic Smoke Ball Company for the promised reward. The company argued that the advertisement was merely a sales puff and not a legally binding offer. However, the court held in favor of Mrs. Carlill. It ruled that the advertisement constituted an offer to the world at large, and anyone who accepted the offer by purchasing and using the product as directed formed a unilateral contract with the company. The court further held that the deposit of £1000 in the bank was a sufficient consideration, and Mrs. Carlill was entitled to the reward. The court's decision emphasized the importance of clear and unambiguous language in advertisements, as well as the principle that an offer can be made to the world at large, creating a binding contract when accepted by performing the specified conditions. The Carlill v Carbolic Smoke Ball Company case is often cited in contract law as a precedent for determining the formation and enforceability of unilateral contracts and the reliance on advertisements as binding offers. It remains a landmark case in the field of contract law and has had a lasting impact on subsequent legal decisions and doctrines.