Carlill v Carbolic Smoke Ball Co. (1893)

Contract I · Offer & Acceptance

Facts.

The company advertised that it would pay £100 to anyone who used its smoke ball as directed and still caught influenza, and said it had deposited £1,000 in a bank to show its sincerity. Mrs Carlill used the ball, caught flu, and claimed the money; the company argued there was no contract.

Issue.

Can an advertisement be a binding offer, and can it be accepted without communicating acceptance in advance?

Held.

The advertisement was a general offer to the whole world, which ripened into a contract with anyone who performed its conditions. Performance was itself acceptance, and communicating acceptance beforehand was dispensed with; the bank deposit showed an intention to be bound.

Why it matters.

It is the foundational authority on general offers, acceptance by conduct, and intention to create legal relations — cited whenever a reward or public promise is in issue.

📄 Full Contract I notes + Question Bank (₹249) — every topic in depth, model answers to all past KSLU questions, in one printable PDF. Get the bundle · All landmark cases · All Contract-I topics