Institute of Management Technology, Ghaziabad

AACSB (AOL) Exam (Term – I) Take Home Exam

(Time Duration: 30 minutes)
Batch 2020 - 22

Answer-sheet

Enroll. No.: 200101091 Name: Mrinal Prem

Section: G

Date: 22nd October, 2020 Term: I

Subject: LAB - I

Faculty Name: SN Ghosh

Answer No.1
Yes, there does exist a fully binding contract between Carbolic Smoke Ball Company
and Mrs. Louisa Elizabeth Carlill, for the amount of £100.
The reasons for the same are:
 The offer communicated in the advertisement was not an offer to the whole
world; rather, it was strictly restricted to those who followed the instructions given
by the company for the usage of the product.
 When Mrs. Carlill used the product in adherence of the instructions, that
amounted to accepting the offer.
  When someone bought or used the product, they incurred a distinct detriment at
the behest of the company, and more people buying the product based on the
advertising clearly constituted benefit to the company.
 By depositing £1000 in the bank and communication that, the company further
displayed an intent to make good on the offer.
Answer No.2

“It has been observed that a large number of persons, who contract the increasing
epidemic influenza colds, or any disease caused by taking cold, could have avoided the
malady by having used the ball three times daily for two weeks, according to the printed
directions supplied with each ball. 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.”