“Advertisement promising reward creates binding unilateral contract with public”
The Carbolic Smoke Ball Company advertised that anyone who used their product three times daily for two weeks and still contracted influenza would receive £100. They deposited £1000 in a bank to show their sincerity. Mrs Carlill purchased and used the smoke ball as directed but contracted influenza and claimed the reward.
Whether an advertisement to the world constitutes a valid contractual offer capable of acceptance, and whether consideration exists in a unilateral contract scenario.
The Court of Appeal held that the advertisement constituted a valid unilateral contract offer that Mrs Carlill had accepted by her conduct in purchasing and using the product. The company was liable to pay the promised reward.
This landmark case established fundamental principles of unilateral contracts and remains the leading authority on when advertisements can create binding legal obligations. It clarified the concepts of offer, acceptance and consideration in contract law.
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OSCOLA Citation
Carlill v Carbolic Smoke Ball Company [1892] EWCA Civ 1
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