Carlill v carbolic Smoke BallCo.(1893)

This is a landmark contract law case.

• Facts: The Carbolic Smoke Ball Company advertised a product, claiming it would prevent influenza. They offered a reward of £100 to anyone who used the smoke ball as directed and still contracted the flu. Mrs. Carlill used the smoke ball, caught the flu, and sued the company for the reward.
• Issue: Was the advertisement a binding offer or merely an invitation to treat? Was there a valid acceptance?
• Decision: The court held that the advertisement was a unilateral offer (an offer that can only be accepted by performance). The company's deposit of £1,000 in the bank showed their serious intention to be bound. Mrs. Carlill's use of the smoke ball as directed constituted acceptance of the offer. Therefore, the company was legally bound to pay the reward.