This slide clearly expressed the importance of Carlill v Carbolic case

1. Importance of carlill v
carbolic smoke ball
Co(1893)1. Kia Jason 0331624
2. Jacky Tiong Lee Song 0332971
3. Jacqueline Kong Jia Min 0336266
4. Jason Goh Han Yuan 0336283

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Carbolic Smoke
Ball Company
launch a product -
“Smoke Ball”
during the flu
epidemic.
Carbolic Smoke Ball
advertised an
advertisement about
any buyers who
found it did not work
would be awarded
£100.
Carlill saw the
advertisement and
she believed the
accuracy of the
statement. Thus ,
she purchased one
packet and used it
thrice everyday.
Carlill had an attack of
influenza after using
and her husband
wrote the letter to the
defendants- Carbolic
Smoke Ball to claim
the stated £100
reward.
Carbolic Smoke Ball
refused to pay as they
argued was a mere
invitation to treat
rather than an offer.
Carlill brought the
claim to court and sue
for damages for
breach of contract .
Story of
Carlill v
Carbolic
Smoke Ball

3. 3
- Advert was a mere puff & not intend to be an offer
- Not possible to make an offer to the world
- No notification of acceptance
- No consideration provided
ARGUMENTS
RAISED BY THE
DEFENDANT

4. “Decision of
courtCourt of appeal rejected the argument from
Carbolic Smoke Ball
Held that Carlill is entitled to the reward of
£100 as the advert constituted an unilateral
offer
Accepted by performing all the conditions
stated in the offer
4

5. Possible to make offer to world at large
but restricted
Deposit of £1000 demonstrated - not a mere
sales puff.
Using the smoke ball - acceptance of offer
Purchasing and usage of the smoke ball -
consideration.
REAS
ONS:-
5

6. 6
Why case of Carlill v
carbolic smoke ball

7. Lesson from the
case:-
● Carlill v Carbolic Smoke Ball frequently
cited as a leading case in the common
law
● Existence of unilateral offer
● Court of appeal clearly stated all the
essential elements to form a legal
contract
● How to differentiate invitation to treat
from offer
7

8. 8
Consideration
Intention to
Create
Legal
Relations
Elements
OF LAW

9. Unilateral Contracts
9
● One-sided contract.
● Can only be accepted by performance
● Can made to the world at large.
● Fulfil the condition = Acceptance
➔ Lord Justice Lindley said that the advertisement are of offer to anybody who fulfil
the condition.
➔ Mrs Carlill had fulfil the condition stated in the offer by using the smoke ball as
instructed from mid November 1891 until 17 January 1892.

10. 10 ● A formation of a contract requires an offer and a matching acceptance.
( i ) Offer - a definite promise to be bound.
( ii ) Acceptance- The offeree/promisee signifies his agreement to the offeror.
Offer & Acceptance
- Argued that an offer cannot be made to the world at large
- Did not accept the “offer”
- No intention to create a binding contract
Offer - Promise made by Carbolic Smoke Ball to give £100
Acceptance - Carlill bought and used the smoke ball

11. comparison between offer and
invitation to treat
OFFER
● Definite promise to be bound
● Legally enforceable
● The offer must contain language of
commitment.
● The offer must contain intention to create
legal relation.
● Lead to binding contract on acceptance.
11
INVITATION TO TREAT
● A proposal to be negotiate
● Not legally enforceable
● An effort to invite others to make an
offer
● Ex: (i) Advertisements
(ii) Job offer
(iii) Display of goods in shop window
(iv) Invitation to tender

12. 12
Identify: Invitation to
treat? Offer?
Most advertisements are invitation to treat
Carbolic Smoke Ball Co. clearly indicated any person who performed the conditions
and did not achieve the expected outcome will be awarded £100
The advertisement amounted to offer
A legal binding contract is formed
Mrs Carlill performed the specified conditions not an
invitation
to treat

13. Communication of acceptance is not
required
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Communication of acceptance is not needed when:-
● The offer is open to the world at large
● The offer does not expressly or impliedly stated that notification of performance is
required
Performance of the condition constitute:-
● Acceptance of offer
● Consideration for the promise made

14. Intention to Create Legal
Relations
● Willingness of a party on accepting the legal consequences to enter a
contract
14
Carbolic Smoke Ball deposited $1000 in
Alliance Bank as a reward to show their
sincerity upon the advert
It was not a mere puff

15. Consideration
● Section 26 Contracts Act 1950 - All contract must be supported by consideration
● Section 2(d) Contracts Act 1950 - promisee must give something in return for the
promise made by the promisor.
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➔ There is ample consideration between Carbolic Smoke Ball Co and Mrs.
Carlill.
➔ Carbolic Smoke Ball Co - Sales production.
➔ Mrs. Carlill - Health.

16. Conclusion
16
❏ Offer can be unilateral
❏ Communication of acceptance is not necessary in unilateral contract
❏ Differentiate Invitation to treat from offer
❏ Elements to create a legal binding contract is clearly stated by the court of appeal
- Offer and Acceptance
- Intention to create legal relation ( $1000 that is deposited in Alliance Bank)
- Consideration (the inconvenience of using the product)

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