Carlill vs. Carbolic Smoke Ball Co (Court of Appeal-1892)
Rule of Law: A General offer may be accepted by any person from among the public who has the knowledge of it. The performance of conditions of an offer will amount to acceptance.
The case of Carlill vs. Carbolic Smoke Ball Co. is an illustration of a contract arising out of a general offer and intention to create a legal relationship. As per the facts of the case, the company issued an advertisement in a newspaper about its product, “the smoke ball” a preventive medicine against influenza. In the advertisement, the company offered to pay a sum of £ 100 as compensation to anyone who contacted influenza or a cold after having used the smoke ball according to the printed directions. The advertisement also contained that a sum of £ 100 had been deposited with the Alliance bank to show the sincerity of the company. A lady, Mrs Carlill relying on the advertisement purchased and used the smoke balls as per directions but Still caught influenza. She sued the company to claim the compensation of £100. The Court of Appeal held that the essential elements of a contract were all present, including offer and acceptance, consideration and an intention to create legal relations. It was a general offer and Mrs Carlill had accepted it by her act, by performing the conditions for acceptance. She was therefore entitled to get the claim.