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.
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