Carlill v. Carbolic Smoke Ball Co (1892)
JUDGEMENT: In the case of Carlill v Carbolic Smoke Ball Co., a company offered by advertisement to pay £ 100 to anyone “who contracts the increasing epidemic influenza, colds or any disease, after having used the ball according to printed directions”. It was added that “1000 euros were deposited with the Alliance Bank showing our sincerity in the matter”. The plaintiff used the smoke balls according to the directions but she subsequently suffered from influenza. When the plaintiff sued the company, the defendants contended that there was no intention to enter into legal relations as it was simply a puffing advertisement; that the offer was not made to any one person in particular and that the plaintiff had not communicated her intention to accept.
Refuting the contentions of the defendants, Bowen LJ., observed that, “Was it intended that the £ 100 should, if the conditions were fulfilled, be paid? The advertisement says that £ 1000 is lodged at the bank for the purpose. Therefore, it cannot be said that the statement that £100 would be paid was intended to be a mere puff.” Further, it was also laid down by the Court that if a general offer is made to world at large and if anybody comes forward and performs the conditions laid down by the offeror, the offer becomes liable to anyone who, before the retraction of the offer performs those condition. Although the offer is made to the world at large, the contract is established with the person who came forward and complied with the terms laid down by the offeror.
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