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Encyclopedia > Carlill v. Carbolic Smoke Ball Company
''Carlill v. Carbolic Smoke Ball Company''
Court of Appeal (Civil Division)
Date decided: 7 December 1892
Full case name: 'Carlill v. Carbolic Smoke Ball Company'
Citations: [1893] 1 QB 256
Judges sitting: Lindley, Bowen and A. L. Smith, L.JJ
Cases cited:
Legislation cited:
Case history
Prior actions: Carlill v. Carbolic Smoke Ball Co, [1892] 2 QB 484 (QBD)
Subsequent actions: None
Keywords
Advertisements, Conditions, Insurance, Offer and acceptance, Wagering contracts
Carbolic Smoke Ball advertisement
Carbolic Smoke Ball advertisement

Carlill v. Carbolic Smoke Ball Company [1893] 1 QB 256 is a landmark case in English contract law, specifically the law of unilateral offers. Her Majestys Court of Appeal is the second most senior court in the English legal system, with only the Judicial Committee of the House of Lords above it. ... Newspaper Ad for the Carbolic Smoke Ball Company This image has been released into the public domain by the copyright holder, its copyright has expired, or it is ineligible for copyright. ... Newspaper Ad for the Carbolic Smoke Ball Company This image has been released into the public domain by the copyright holder, its copyright has expired, or it is ineligible for copyright. ... // The United States Reports, the official reporter of the Supreme Court of the United States Case citation is the system used in many countries to identify the decisions in past court cases, either in special series of books called reporters or law reports, or in a neutral form which will... Offer and acceptance analysis is a traditional approach in contract law used to determine whether an agreement exists between two parties. ...

Contents

Background

The Carbolic Smoke Ball Company made a product called a smoke ball that it claimed could protect the user from contracting influenza. The smoke ball was a rubber ball with a tube attached. It was filled with carbolic acid (phenol). The tube was then inserted into the user's nose. It was squeezed at the bottom to release the vapours into the nose of the user. This would cause the nose to run, and hopefully flush out the cold. In fact the inflammation caused by the device would have probably increased susceptibility to catching influenza. Flu redirects here. ... Phenol, also known under an older name of carbolic acid, is a colourless crystalline solid with a typical sweet tarry odor. ... Vapor (US English) or vapour (British English) is the gaseous state of matter. ... An abscess on the skin, showing the redness and swelling characteristic of inflammation. ...


The Company published advertisements claiming that it would pay £100 to anyone who got sick with influenza after using its product according to the instructions set out in the advertisement.


They stated:

£100 reward will be paid by the Carbolic Smoke Ball Company to any person who contracts the increasing epidemic influenza, colds or any disease caused by taking cold, after having used the ball three times daily for two weeks according to the printed directions supplied each ball. £1000 is deposited with the Alliance Bank, Regent Street, showing our sincerity in the matter.

Mrs Carlill, relying on the promises made in the advertisement, bought one of the balls and used it in the manner specified, yet still managed to contract influenza.


Ruling

The Carbolic Company claimed that there was no enforceable contract between it and the user of the smoke ball on the grounds that there was no acceptance of its offer, because Mrs Carlill had never notified the Company that she accepted its offer, nor furnished any consideration, since the Company did not receive any benefit from a purchaser's use of the product once the sale had been completed. Offer and acceptance analysis is a traditional approach in contract law used to determine whether an agreement exists between two parties. ... It has been suggested that Consideration under American Law be merged into this article or section. ...


The court rejected both arguments, ruling that the advertisement was an offer of a unilateral contract between the Carbolic Smoke Ball Company and anyone who satisfies the conditions set out in the advertisement. Once Mrs Carlill had satisfied the conditions she was entitled to enforcement of the contract; the notification of performance of the conditions formed part of the acceptance. Furthermore, weight was placed on the £1000 bank deposit that claimed to 'shew[sic] their sincerity in the matter' in showing that the advertisement was not just a puff. A contract is a legally binding exchange of promises or agreement between parties that the law will enforce. ...


As to consideration, the Court of Appeal held that there was consideration on two grounds. The first was the benefit that the defendants gained as a result of the use of the smoke ball in response to the advertisements and the sales produced thereby. The second was that the use by Mrs Carlill of the smoke ball three times daily for two weeks constituted a detriment so that she had provided consideration for the defendants' promise.


Later influence

The case was quoted extensively in the famous "Pepsi Points case", Leonard v. Pepsico, Inc., 88 F.Supp.2d 116 (S.D.N.Y 1996), wherein presiding Judge Kimba Wood wrote: Pepsi Stuff refers to a marketing campaign by Pepsi in the 1990s featuring merchandise that could be purchased with Pepsi points. ... Leonard v. ... // The United States Reports, the official reporter of the Supreme Court of the United States Case citation is the system used in many countries to identify the decisions in past court cases, either in special series of books called reporters or law reports, or in a neutral form which will... The United States District Court for the Southern District of New York (SDNY) is the Federal district court whose jurisdiction is comprised of the following counties: New York, Bronx, Westchester, Putnam, Rockland, Orange, Dutchess, and Sullivan. ... Year 1996 (MCMXCVI) was a leap year starting on Monday (link will display full 1996 Gregorian calendar). ... Kimba Wood (born 1944) is a U.S. federal judge. ...

Long a staple of law school curricula, Carbolic Smoke Ball owes its fame not merely to "the comic and slightly mysterious object involved"... but also to its role in developing the law of unilateral offers.

// A law school is an institution where future lawyers obtain legal degrees. ...

External links

See also

Wikisource has original text related to this article:
Carlill v. Carbolic Smoke Ball Company
Image File history File links Wikisource-logo. ... The original Wikisource logo. ... A contract is a legally binding exchange of promises or agreement between parties that the law will enforce. ... Offer and acceptance analysis is a traditional approach in contract law used to determine whether an agreement exists between two parties. ... In contract law, an invitation to treat (invitation to bargain in the US) is an action by one party which may appear to be a contractual offer but which is actually inviting others to make an offer of their own. ... Partridge v. ...


 
 

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