Carlill v Carbolic Smoke Ball Company is an 1893 decision of the England and Wales Court of Appeal that remains the leading case on unilateral contracts. The company advertised that it would pay one hundred pounds to any user of its smoke ball product who followed the directions and still caught influenza, and stated it had deposited money at a bank to demonstrate its sincerity. Mrs Carlill used the product as directed, caught influenza anyway, and sued when the company refused to pay, arguing the advertisement was mere sales talk rather than a serious offer. The Court of Appeal held that the advertisement constituted a genuine unilateral offer to the whole world, capable of being accepted by anyone who performed the stated conditions, and that Mrs Carlill s performance created a binding contract entitling her to payment. The case is a foundational teaching authority on offer, acceptance by conduct, and intention to create legal relations.
Facts
Decision Year Decision Date HoldingHeld that an advertisement containing certain terms to obtain a reward constituted a binding unilateral offer that could be accepted by anyone who performed its terms. 2 Current StatusThe case remains good law and still binds the lower courts of England and Wales; it is cited by judges with approval. 2 Case Status
Case Status (category) Connections
Decided By
Source Carlill v Carbolic Smoke Ball Co (Wikipedia)
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Sources
1. Wikidata: Carlill v Carbolic Smoke Ball Company
Source: still discussed as the leading introductory contract-law authorityView the Source 2. Carlill v Carbolic Smoke Ball Co (Wikipedia)
WikipediaLead section, opening sentence
which held an advertisement containing certain terms to get a reward constituted a binding unilateral offer that could be accepted by anyone who performed its terms.
Significance section, Law of contract subsection
The case remains good law. It still binds the lower courts of England and Wales and is cited by judges with approval.
Infobox, date decided field
7 December 1892
- Decided By: Court of Appeal of England and Wales, Infobox court field: Court of Appeal
In Group: Offer, Acceptance and Sale Cases, Introduction
is an English contract law decision by the Court of Appeal, which held an advertisement containing certain terms to get a reward constituted a binding unilateral offer that could be accepted by anyone who performed its terms.
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