Carlill Vs Smke Ball Company

Carlill v Carbolic Smoke Ball Co [1893] 1 QB 256 Court of Appeal

Facts of the case

Carbolic smoke ball company made product "smoke ball". It was a rubber ball with a tube attached filled with carbolic acid. The company published ad in pall mall gazette & other news papers claiming for £100 reward to any person who got sick with influenza cold after having used the balls 3 times daily for 2 weeks according to printed instructions supplied with balls.

* Company deposited £1000 with alliance bank showing their sincerity in the matter.

* Mrs Carlill purchased smoke balls & used them according to instructions &caught flu.

She sought to claim stated £100 reward but defendants pleaded that ad was mere an invition to treat rather than an offer. The company lost the case at queen bench & appealed straight away. The court of appeal rejected the company's arguments & declared the contract fully binding.

 3 judges declared ad an offer restricted to those who acted upon the terms contained in the ad

 That satisfying conditions for using smoke balls constituted acceptance to the offer

 Purchasing & using balls constituted consideration

 The company's claim that £1000 deposited at alliance bank showed serious intention to be legally bound

Result

Such case ad amount to offer.

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