Prof. Jeong Chun Phuoc
012014111647
Assignment 2 – Weekly Case Law Critique
WEEK 1 CASE LAW ON
CARLILL V CARBOLIC SMOKE BALL (1893)
Issue
1. Was the advertisement by Carbolic Smoke Ball Co. a contract with the whole world?
2. Was the advertisement by Carbolic Smoke Ball Co., rewarding 100 pounds to any person who uses the product (smoke ball) as directed for a given period and still get contracted to influenza, colds or other diseases a "mere puff"/ “nudum pactum” ?
Analysis
From my view, I agree with the judgement of the issue that the advertisement was not a unilateral offer to the world but an offer restricted to those who acted upon the terms contained in the advertisement claim the reward 100 pounds from the company because to fill the criteria that contract to be valid, consideration and acceptance should be present which was proved by the case in the judgement. For binding contract an offer is made, accepted, and that acceptance should be notified. Carlill fulfilled all conditions listed in the ad therefore binding in a contract state from the advertisement with the company.
Fulfilling the terms provided,
Additionally, the advertisement was not a mere puff / “nudum pactum” as the company showed responsibility and trust towards their customers, they deposited a sum of 1000 pounds in the bank for the reward claim which will help gain trust and loyalty with the intention of gaining profits. As this shows, the company had an objective to sell the product and in order to get the attention of the people / public they advertised the product and presented it with terms directed which were rather vague, hence they were bonded to contract with Carlill. Consideration was made in the statement with the intention of gaining security therefore, the advertisement was not a mere puff.
Carlill is fully obligated to claim the reward that was advertised.
References
1, [. E. (n.d.). England and Wales Court of Appeal (Civil Division) Decisions. Retrieved from
References: 1, [. E. (n.d.). England and Wales Court of Appeal (Civil Division) Decisions. Retrieved from Baiili: http://www.bailii.org/ew/cases/EWCA/Civ/1892/1.html Clarke, J. (2013). http://www.australiancontractlaw.com/cases/carlill.html. Retrieved from Australian Contract Law: http://www.australiancontractlaw.com/cases/carlill.html MBA BUSINESS LAW Jan / 2015 Page 1 of 1