Carlill v Carbolic Smoke Ball Co [1892] EWCA Civ 1 (7 December 1892)

CARLILL v CARBOLIC SMOKE BALL CO [1892] EWCA Civ 1; [1893] 1 QB 256 Court of Appeal 7 December 1892

Judges: Lindley LJ, Bowen LJ, A L Smith LJ

Facts

The Carbolic Smoke Ball Company advertised in the Pall Mall Gazette that it would pay £100 to any person who contracted influenza after using its smoke ball three times daily for two weeks according to the printed directions. The company deposited £1,000 with a bank to show its sincerity. Mrs Carlill bought a smoke ball, used it as directed, and caught influenza. The company refused to pay. Hawkins J found for Mrs Carlill. The company appealed.

Held

The Court of Appeal dismissed the appeal. The advertisement was a unilateral offer to the world, not a mere puff. Acceptance did not require prior notice; it was completed by performance of the conditions. The deposit of £1,000 showed an intention to create legal relations. Mrs Carlill's purchase and use of the ball was consideration.

Key Principles

1. An offer may be made to the world at large.

2. A unilateral offer is accepted by performance of the stipulated conditions, without prior communication of acceptance.

3. An advertisement can be a binding offer if it shows an intention to be bound.

4. The offeree's detriment in performing the act is good consideration.

5. The case is the leading authority on unilateral contracts and is taught in every common-law jurisdiction.

Why It Matters in Sierra Leone

Sierra Leone contract law follows the English common law. Carlill is persuasive authority on offer, acceptance, consideration and intention to create legal relations. It is the standard authority for unilateral contracts and is cited when the court considers whether an advertisement or public promise is enforceable.