Carlill v Carbolic Smoke Ball [1892] EWCA Civ 1

 

The case of Carlill v Carbolic Smoke Ball is a very common case among law students who is taking contract law subject. Can an advertisement is consider as an offer even though it is not made to a specific person?

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Issue:

The issue that arose in this case is whether there is offer has been made by the company even though it is not made to a specific person?

Whether the advertisement and promise will become a binding contract once acceptance exist?

 

Fact of case:

There are two parties that involved in this which are the plaintiff, Carlill and defendant, Carbolic Smoke Ball. The company produce a product known as “Smoke Ball” and they claimed that this smoke ball can cure and prevent from influenza and other diseases as well. Later, the company (defendant) published an advertisement on a newspaper in order to promote their product “Smoke Ball”. In that particular advertisement, the company said that they will grant and pay 100 pound to any person who had an attack of the influenza after using their product which is the smoke ball in a prescribed manner.

After some of time, the plaintiff, Carlill read the advertisement and purchased the said smoke ball. Unfortunately after using the smoke ball, she had an attack of influenza. So, she wrote a letter to the company as she wanted to claim the amount of money that has been promised and advertised on the newspaper. However, the company refused to grant 100 pound to Carlill. So, Carlill brought a legal action against the company on the ground that there is invitation to treat and she is entitle to claim the money from the company.

 

Held:

The court dismissed and rejected the argument given by the defendant, Carbolic Smoke Ball. The plaintiff is entitle to claim the amount of money that has been promised by the company. Even though the promise was made to any person as no specific person, it is still bind and come into an effect when there is acceptance from any person. When the company published the advertisement saying that they will pay 100 pound to anyone who get influenza after using the smoke ball (it is considered as an offer), thus if there is any person who had an attack of influenza then it is said there is acceptance occurred.

The offer made by the company is known as unilateral offer. Which means the offer can be made to the public (not specific) and there is no specific person to whom he give the offer. Once, there is acceptance made by any other person therefore the contract is complete and come into effect.

In conclusion, Carlill (plaintiff) succeed in her claim and she is entitle to recover 100 pound that is promised from the company. There was a binding contract therefore the defendant must pay the promised amount to Carlill.