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Carlill vs. Carbolic Smoke Ball Co.": " A Case Study
Carlill vs. Carbolic Smoke Ball Co.": " A Case Study
Carlill vs. Carbolic Smoke Ball Co.": " A Case Study
”
A Case Study
1 Introduction
1
Manupatra.com\case_1893\Carlill vs. carbolic smoke ballco. ...
Keywords of the Case2:--
1. Contract: is an exchange of promises between two or
more parties to do, or refrain from doing, an act which is
enforceable in a court of law.
2. Offer: When a person signifies to another his willingness
to do or to abstain from doing anything with a view to
obtaining the assent of that other to such act or abstinence,
he is said to make an offer.
3. Acceptance: usually refers to cases where a person
experiences a situation or condition without attempting to
change it.
2
Law of contract by R.K Bangia
Chapter
3
£7,792.31 in 2007 pounds/roughly $15,380 mid-2008 US dollars
for two weeks, according to the printed directions
supplied with each ball.
£1000 is deposited with the Alliance Bank, Regent Street,
showing our sincerity in the matter.
During the last epidemic of influenza many thousand
carbolic smoke balls were sold as preventives against this
disease, and in no ascertained case was the disease
contracted by those using the carbolic smoke ball.
One carbolic smoke ball will last a family several months,
making it the cheapest remedy in the world at the price, 10s.
post free. The ball can be refilled at a cost of 5s. Address:
“Carbolic Smoke Ball Company”, 27, Princes Street,
Hanover Square, London. ”
Mrs. Louisa Elizabeth Carlill saw the advertisement, bought
one of the balls and used it three times daily for nearly two
months until she contracted the flu on 17 January 1892. She
claimed £100 from the Carbolic Smoke Ball Company. They
ignored two letters from her husband, a solicitor. On a third
request for her reward, they replied with an anonymous
letter that if it is used properly the company had complete
confidence in the smoke ball's efficacy, but "to protect
themselves against all fraudulent claims" they would need
her to come to their office to use the ball each day and be
checked by the secretary. Mrs Carlill brought a claim to
court. The barristers representing her argued that the
advertisement and her reliance on it was a contract between
her and the company, and so they ought to pay. The
company argued it was not a serious contract.
Issue: Does an advertisement to the general public promising to pay
money to anyone who does something create a binding contract
between the parties?
Arguments:
The Defendant argued that:
Contract was too vague to be enforced;
No way to check the conditions were met;
You cannot contract with everybody (ie the whole world);
Timeframe not specified;
Acceptance had not been communicated to the offeror;
There was no consideration: nudum pactum;
Analysis:
Bowen L.J.: How would an ordinary person construe this document?
Was it intended that the ₤100 should, if the conditions were
fulfilled, be paid? The advertisement says that ₤1000 is lodged at
the bank for this purpose. Therefore the statement was not a mere
puff, “I think it was intended to be understood by the public as an
offer which was to be acted upon.”
The extravagance of a promise is no reason in law to not enforce a
contract. “If this is an offer to be bound, then it is a contract
the moment the person fulfils the condition.”
Whether notification is required in advertising cases is to be
determined by the language of the ad and the nature of the
transaction. The law does not require us to measure the adequacy of
consideration and inconvenience sustained by one party at the
request of another is enough to create consideration.
Lindley M.R.: “the person who makes the offer shows by his
language and from the nature of the transaction that he does not
expect and does not require notice of the acceptance apart from
notice of the performance.”
Chapter
4
Pg. 32, The Modern Law Of Contract by Richard Stone
Chapter
5
^ Council Directive 85/374/EEC of 25 July 1985 on the approximation of the laws, regulations and administrative
provisions of the Member States concerning liability for defective products
Chapter
5 Conclusion
5. Wikipedia.com