Tags: apiedit, Visual edit
m (Reverted edits by 216.162.88.62 (talk | block) to last version by 59.180.33.158)
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|Row 9 info = Can one make a contract with the whole world?
 
|Row 9 info = Can one make a contract with the whole world?
 
}}
 
}}
==Facts ==
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==Facts==
 
The Carbolic Smoke Ball Company made a product called the "smoke ball" which claimed to be a cure for influenza and a number of other diseases. The Company published advertisements claiming that it would pay £100 to anyone who got sick with influenza after using its product according to the instructions set out in the advertisement.
 
The Carbolic Smoke Ball Company made a product called the "smoke ball" which claimed to be a cure for influenza and a number of other diseases. The Company published advertisements claiming that it would pay £100 to anyone who got sick with influenza after using its product according to the instructions set out in the advertisement.
 
text me 610-781-3800
 
 
<blockquote>£100 reward will be paid by the Carbolic Smoke Ball Company to any person who contracts the increasing epidemic influenza colds, or any disease caused by taking cold, after having used the ball three times daily for two weeks, according to the printed directions supplied with each ball. £1,000 is deposited with the Alliance Bank, Regent Street, showing our sincerity in the matter.</blockquote>
 
<blockquote>£100 reward will be paid by the Carbolic Smoke Ball Company to any person who contracts the increasing epidemic influenza colds, or any disease caused by taking cold, after having used the ball three times daily for two weeks, according to the printed directions supplied with each ball. £1,000 is deposited with the Alliance Bank, Regent Street, showing our sincerity in the matter.</blockquote>
 
Mrs. 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. 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.
 
Mrs. 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. 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.
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*The terms of the contract (if vague) will be interpreted purposively from the contract.
 
*The terms of the contract (if vague) will be interpreted purposively from the contract.
 
*The offeror can determine how acceptance of offer will be made.
 
*The offeror can determine how acceptance of offer will be made.
* text me 610-781-3800
 
 
[[Category:Contract law]]
 
[[Category:Contract law]]
 
[[Category:Cases from the United Kingdom]]
 
[[Category:Cases from the United Kingdom]]

Revision as of 19:55, 21 February 2015

Facts

The Carbolic Smoke Ball Company made a product called the "smoke ball" which claimed to be a cure for influenza and a number of other diseases. The Company published advertisements claiming that it would pay £100 to anyone who got sick with influenza after using its product according to the instructions set out in the advertisement.

£100 reward will be paid by the Carbolic Smoke Ball Company to any person who contracts the increasing epidemic influenza colds, or any disease caused by taking cold, after having used the ball three times daily for two weeks, according to the printed directions supplied with each ball. £1,000 is deposited with the Alliance Bank, Regent Street, showing our sincerity in the matter.

Mrs. 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. 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

  1. Can one make a contract with the whole world?
  2. How does one interpret vague terms?
  3. Was the ad a "mere puff"?
  4. Does performance of the conditions advertised in the paper constitute acceptance of an offer?
  5. Was there consideration?

Decision

Appeal not dismissed.

Reasons

Bowen, writing for the majority, held that the contract was not with the whole world, but rather with those who fulfill the stipulated conditions. He held that the terms were not vague if read in their plain meaning; entitled to reward (that is, a contract is formed) if one used the ball for two weeks, three times a day and got the flu. However if one used the ball before the ad and got the flu there would be no contract created due to no reliance interest. As for mere puffery, the language of the ad indicating that they had £1,000 in the bank directly contradicts that claim. Performance of the condition of the ad was sufficient acceptance and it was not necessary that Carbolic Smoke Ball Co. be notified of the intention to be bound. He further ruled that the inconvenience of Carlill was sufficient consideration.

Lindley wrote that notification of acceptance need not precede performance, in this case acceptance was contemporaneous with performance. Further, the offeror showed by their words and the nature of transaction that he did not require notice of acceptance to be bound.

Ratio

  • An advertisement can constitute a unilateral contract, which can be accepted by fulfilling the conditions of the contract; no formal acceptance required.
  • The determination of a serious offer will be determined from the words and actions.
  • The terms of the contract (if vague) will be interpreted purposively from the contract.
  • The offeror can determine how acceptance of offer will be made.
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