Case: Carlill v. Carbolic Smoke Ball Company [1893] 1 QB 256
Introduction:
Carlill v. Carbolic Smoke Ball Company Ltd is one of the most leading cases in the law of contracts under common law. Known for both its academic importance and its contribution in the development of the laws relating unilateral contracts, it is still binding on lower courts in England and Wales, and is still cited by judges in their judgements. This research paper aims to critically examine and analyze the facts and the judgement of the case, along with the issues raised in the case and the impact of this case in general. To understand the case better, firstly let us look at the law as it stood before the case.
The law as it stood before the case:
A number of important issues were determined in this case, which still remains as an authority in a number of aspects. Before the judgement in Carlill v. Carbolic smoke ball company, the laws relating to rewards announced in advertisements (General offers), acceptance and communication of acceptance, and consideration were as follows:
General offers: It was already established in the 1833 case of Williams v. Carwardine that an advertisement amounted to a general promise or contract to pay the offered reward to any person who performed the conditions mentioned in it. Though not entirely binding, this decision was very much relied on in this case, as we will see in the judgement of the court regarding this issue.
Acceptance and communication of acceptance in cases of this kind: The law relating to communication of acceptance was somewhat stated by Lord Blackburn in the case of Brogden v. Metropolitan Railway Company when he observed “If notice of acceptance is required, the person who makes the offer gets the notice of acceptance contemporaneously with his notice of the performance of the condition. If he gets notice of the acceptance before his offer is revoked, that in principle is what you want.”
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