Carlill v Carbolic Smoke Ball Co

Facts

The company advertised £100 to anyone who used its smoke ball as directed and still caught influenza. It said £1,000 had been deposited to show sincerity. Mrs Carlill used the ball and became ill.

Issue

Was the advertisement an offer, and did she have to notify acceptance before using it?

Held

Yes, it was an offer to the world. The deposit showed it was serious. Performance of the condition was acceptance. No earlier notice was required.

Principle

A unilateral offer can be made to the world and accepted by doing what it asks.

Why it matters

It is the exception to the rule that advertisements are invitations to treat.

For study only. By lanbuk.com. Always check current sources and consult a qualified professional.