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[1893] 1 Q.B. 256
tl;dr:
A company’s advertisement included a promise to give customers a reward if the product was ineffective. This ad was an offer to form a contract, and users who didn’t receive the promised results are entitled to the reward.Case Summary
In Carlill v. Carbolic Smoke Ball Co. (1893), the Court of Appeal of England and Wales ruled on a reward claim related to an advertisement. Louisa Carlill, the plaintiff, used the Carbolic Smoke Ball, which was supposed to prevent influenza, and sued the manufacturer, Carbolic Smoke Ball Co., for £100 when she got sick. The company argued that their ad was not a serious offer, but merely promotional.
The lower court decided in favor of Carlill, awarding her £100. The Court of Appeal agreed that there was a valid contract between the parties, and that the advertisement was an offer that could be accepted by simply following its instructions. The court also found that no communication was needed by Carlill to accept the offer and that there was consideration in the case due to potential harm from using the smoke ball and the promise to pay the reward.
This case is essential because it demonstrates how courts evaluate contract formation and interpretation, addressing issues like offer and acceptance, consideration, intent to create legal relations, and puffery in advertising. It helps anyone working with contracts understand the implications of offers and claims.
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