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Carlill v Carbolic Smoke Ball Co – Case Summary

Carlill v carbolic smoke ball company, court of appeal.

Citations : [1893] 1 QB 256.

The defendant sold a medicine which they called a ‘Carbolic Smoke Ball’. When they advertised the product, they stated that they would pay a sum of money to any person who used it and still caught influenza. They claimed that they had already deposited money with a local bank in preparation to meet such claims. The claimant saw one of these adverts and bought the product. However, despite using it properly, the claimant still caught the flu. The defendant refused to pay the money promised in the advert.

  • Had the promise to pay money if the claimant caught the flu become a binding contract?

The Court of Appeal held in favour of the claimant. The advert was an offer which the claimant accepted by purchasing the medication and using it as directed. The defendant was therefore bound to pay the claimant the money.

This Case is Authority For…

Adverts are normally invitations to treat rather than offers. However, this turns on whether a reasonable person seeing the advert would think that the advertiser intended to be legally bound by anyone who acted in accordance with the advert. In some cases, such as this one, an advert can be an offer. Relevant factors include:

  • How vague the promise is;
  • Whether the language indicates that the advertiser is merely soliciting offers or seeking to negotiate;
  • Whether the language provides any guarantees or indicates seriousness and sincerity.

An offer can be made to the world at large: these are known as unilateral offers. Unilateral offers are accepted by performing as the offer demands. There is usually no need for the offeree to notify the offeror that he is performing. This is an exception to the rule that acceptance of an offer must be communicated to the offeror. It is justified by the fact that terms and language of the offer normally waive the need for communication.

The defendant also tried to pass the promise to pay money as a ‘mere puff’. A mere puff is sales patter which reasonable people would not take seriously. Lindley LJ stated that this was inconsistent with the defendant’s claim to have deposited the money with a bank. That claim indicated to customers that the defendant was serious.

The court also had to consider whether the claimant provided any consideration for the defendant’s promise to pay. Lindley LJ argued that the benefit to the defendant was the fact that by making the promise, they were more likely to motivate customers to buy the product. Alternatively, he relied on the fact that the claimant inconvenienced themselves (by using the product) at the defendant’s request. Bowen LJ added that the mere use of the product was likely to indirectly lead to more sales. This also benefited the defendant.

case study of carlill vs carbolic smoke ball company

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Legal Three

Carlill v. Carbolic Smoke Ball Co. (1893)

IRAC Summary

Issue : Whether there was a binding contract between Mrs. Carlill and the Carbolic Smoke Ball Company through the advertisement of a reward for any person who used their product, the smoke ball, and contracted influenza.

Rule : A contract requires an offer that is clear, unequivocal, and communicated to the offeree, an acceptance of that offer, and consideration to show that the parties intend to be bound by the terms. Unilateral contracts are formed when a party promises something in exchange for the performance of an act by the other party. Acceptance occurs upon performance of the conditions stated in the offer.

Application : The company advertised that it would pay £100 to anyone who contracted influenza after using their smoke ball according to the instructions provided. Carlill used the product as directed and subsequently contracted influenza. The company argued that there was no contract as the advertisement was not an offer but a sales puff and there was no acceptance. However, since the advertisement contained a clear promise for payment in exchange for a specific act, it constituted an offer for a unilateral contract. Carlill’s use of the smoke ball as stipulated was the acceptance of the offer through performance, and her reliance on the promise was the consideration.

Conclusion : The court concluded that there was a legally binding unilateral contract between Carlill and the Carbolic Smoke Ball Company, and as such, the company was required to pay the £100 to Mrs. Carlill.

Detailed IRAC Outline

The primary issue is whether the advertisement by the Carbolic Smoke Ball Company constituted an offer to enter into a unilateral contract that could be accepted by anyone who performed the conditions stated in the advertisement, and whether Mrs. Carlill successfully accepted this offer, entitling her to the reward after contracting influenza despite using the product.

  • Offer: An offer must be clear, unambiguous, and communicated to the offeree. It must indicate an intention to be bound upon acceptance.

Unilateral Contracts: A unilateral contract involves a promise in exchange for an act. Acceptance is typically through full performance of the act.

Acceptance: In unilateral contracts, acceptance is typically the performance of the condition of the offer.

Consideration: Consideration is some value given by both parties to a contract that induces them to enter into an agreement to exchange mutual performances.

Application

Offer : – The advertisement promised to pay £100 to any person who used the smoke ball and then contracted influenza, which is a clear representation of an offer to the public.

Unilateral Contracts : – The advertisement can be interpreted as an offer for a unilateral contract where the Carbolic Smoke Ball Company promised to pay upon the occurrence of a specified act (using the smoke ball and contracting influenza despite this).

Acceptance : – Mrs. Carlill accepted the offer by performing the act required (using the smoke ball as directed) which constitutes acceptance in a unilateral contract.

Consideration : – Mrs. Carlill’s action of using the smoke ball as per the instructions provided consideration in the form of reliance on the promise made in the advertisement, which required her to undertake certain actions and possibly forgo other treatments.

The court held that the Carbolic Smoke Ball Company’s advertisement constituted a legitimate offer for a unilateral contract, which Mrs. Carlill accepted through her performance of the act as specified in the advertisement. She provided consideration by altering her conduct in reliance on the promise. Therefore, a binding contract existed, and the company was obligated to pay Mrs. Carlill the £100 promised in the advertisement.

Discussion of the Case

Validity of the Advertisement as an Offer : – The court rejected the argument that the advertisement was a sales puff or too vague to constitute an offer. Instead, it saw the promise as definite and the deposit of £1000 in the bank as evidence of the company’s intention to be bound.

Nature of Contractual Acceptance in Unilateral Contracts : – The acceptance of an offer in a unilateral contract is not through communication of acceptance but rather through the performance of the condition.

Consideration and General Offers to the Public : – The consideration was not solely the use of the smoke ball but also the potential detriment to Mrs. Carlill, who acted based on the company’s promise, altering her behavior and assuming the risk of the product’s failure.

Intent to Create Legal Relations : – The company’s actions and the specificity of the offer indicated an intention to be legally bound, rather than making a mere declaration of intent or wish.

Implications of the Decision : – The case established important precedents for contract law, particularly in relation to unilateral contracts, advertisements as offers, and the sufficiency of consideration through performance and reliance.

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Case Summary: Carlill vs. Carbolic Smoke Ball Company

Court : Court of Appeal (Civil Division)

Full Case Name : Louisa Carlill v Carbolic Smoke Ball Company

Date Decided : 8th December 1892

Citations: [1892] EWCA Civil 1, [1893] 1 QB 256

Judges : Lindley LJ, Bowen LJ And AL Smith LJ

Prior Actions : Carlill v Carbolic Smoke Ball Co [1892] 2 QB 484

Defendant : Carbolic Smoke Ball Company

Brief Facts Summary:   The plaintiff believing the advertisement in a newspaper stating the use of the smoke ball would prevent the influenza and flu. She used the smoke ball as prescribed in the advertisement for some time and still had an attack of influenza. She filed the suit for 100£ as mentioned in the advertisement.

Facts: The defendant, Carbolic Smoke Ball Company placed an advertisement in several newspapers on November 13, 1891 of their product which if used 3 times daily for 2 weeks would prevent the flu (a pandemic during 1889-90 which had taken around 1 million lives at that time) and influenza. And also the makers of the product additionally offered a 100£ reward to anyone who would get flu or influenza after using their product as prescribed with a prescription supplied with the ball by stating that they had deposited 1000£ just for the reward and thus leading the people to buy their product.

The plaintiff, Louis Carlill after seeing the above-mentioned advertisement in one of the newspapers bought the smoke ball and started using it from November 20, 1891 until January 17, 1892 exactly as prescribed in printed prescription supplied with the ball. But she had an influenza attack later.

Issues: Lindley JJ on behalf of the court of appeal, noted that the main question at the hand was whether the promise mentioned in the advertisement of a reward of 100£ was meant to be an expressed promise or just a sales puff to lead people into buying their product.

Judgement : The appeal was dismissed unanimously and thus held that the contract between the company and the plaintiff was a valid contract.

Some of the main reasons behind the judgement :

  • The offer mentioned in the advertisement was a unilateral offer.
  • The use of the smoke ball as prescribed in the advertisement was an implication of acceptance of offer.
  • The company’s claim of depositing 1000£ at Alliance Bank showed seriousness to keep the promise.      

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case study of carlill vs carbolic smoke ball company

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  • Contract Law Cases
  • Offer and Acceptance Cases

Carlill v Carbolic Smoke Ball Co [1893] 1 QB 256

Judgement for the case carlill v carbolic smoke ball co, table of contents.

Advertisements can constitute a valid offer, especially when they contain clear and specific promises or conditions that are intended to be acted upon by the public or specific individuals.

In a unilateral contract, acceptance is demonstrated through the performance of the specified condition rather than through a traditional verbal or written acceptance.

The defendant, Carbolic Smoke Ball Co, marketed a product called the "smoke ball" as a preventive measure against influenza. The company published advertisements in various newspapers, promising a reward of £100 to anyone who used the smoke ball according to their instructions and still contracted influenza.

Mrs. Carlill, the plaintiff, purchased and used the smoke ball according to the instructions provided. Unfortunately, she still caught the flu, and she claimed the £100 reward as advertised by the company.

Carbolic Smoke Ball Co, however, refused to pay the reward, arguing that the advertisement was merely a puff or a sales gimmick and not a serious offer to be bound by contract.

The Court of Appeal ruled in favour of Carlill, stating that a valid contract has arisen with the defendant for £100.

The court further emphasised that the advertisement was addressed to the public at large, inviting anyone who fulfilled the specified conditions (using the smoke ball as directed and still contracting influenza) to accept the offer and claim the reward. This illustrates the concept of a unilateral contract, where acceptance is not through a direct communication of acceptance but through the performance of the specified condition.

ORIGINAL ANALYSIS

Defendant advertised his product saying that if one used it and still caught “the current epidemic of” influenza, he would give you £100 and to show his sincerity in the matter £1000 had been put in a bank account for this purpose. 

Plaintiff caught influenza and sued Defendant for the £100. 

CA held that the advertisement WAS an offer and Defendant had to pay.

Defendant tried to argue that the offer was too vague to be valid, in that it had no addressee and was not seriously intended as nobody would make an offer of this kind to the whole world. Finally it couldn’t be taken seriously because the offer had no time limit, which would make no sense from Defendant’s perspective. 

We have to ask “how would an ordinary person, reading this document, construe it?” His answer is to take it at face value. He says that the offer was limited either to the duration of the “epidemic” or to the period of usage of the product. The advertisement was not a mere “puff” or “proclamation” because it was intended to be perceived by the public as an offer to be relied on (i.e. more people would buy the product having seen the advert). This shows that an intent to create legal relations is needed . 

Because of the specific nature of the advertisement, it is to be treated as an offer (to all the world) and NOT mere invitation to treat, as most adverts are. 

It is the law that an offeror can, explicitly or impliedly, dispense with the requirement to be notified of acceptance (even though such notification is usually required) e.g. cases of rewards for finding lost pets. In this case, the advert impliedly dispensed with notification. 

There WAS consideration because Defendant got a sale in return for the offer. Is this true - what if Plaintiff would have bought the ball regardless of the offer?  

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Leading Cases in the Common Law

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Leading Cases in the Common Law

10 Quackery and Contract Law : Carlill v . Carbolic Smoke Ball Company ( 1893 )

  • Published: September 1996
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This chapter discusses the case of Carlill v. Carbolic Smoke Ball Company . Continuously studied though it has been by lawyers and law students for close to a century, an air of mystery long surrounded the case; even at the time the very form taken by the celebrated smoke ball was unknown to Lindley LJ, who adjudicated in the case in the Court of Appeal. He is reported to have referred to it as ‘a thing they call the ‘Carbolic Smoke Ball’. What that is, I don't know’. Happily, a considerable volume of material survives that makes it possible to recreate at least something of the historical background and significance of this landmark in the history of contract law and its relationship to the seedy world of the late 19th-century vendors of patent medical appliances.

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Carlill v Carbolic [1892]

Carlill v Carbolic Smoke Ball Co [1893] 1 QB 256 is a landmark case in contract law that established the principle that an advertisement containing a promise conditional upon some form of performance can constitute an offer of a unilateral contract. The case involved the Carbolic Smoke Ball, a product advertised as a preventive measure against influenza and other diseases.

The Carbolic Smoke Ball Co placed an advertisement in the newspaper, claiming that they would pay £100 to anyone who used their smoke ball three times daily for two weeks and still contracted influenza or associated diseases. The advertisement also emphasised the company's sincerity by stating that £1000 had been deposited in the bank to demonstrate their commitment. Mrs Carlill purchased one of the smoke balls, followed the usage instructions, yet still caught influenza. She sued the company for the promised £100.

In the Court of Appeal, the key issues were whether a contract existed between Mrs Carlill and the Carbolic Smoke Ball Company and whether the conditions specified in the advertisement constituted a valid offer.

Lindley LJ, delivering the judgment, held that a unilateral contract had indeed been formed between Mrs Carlill and the company. He emphasised that the advertisement amounted to a specific offer made to the public, and anyone who performed the conditions specified therein would be considered to have accepted the offer. The deposit in the bank was seen as evidence of the company's sincerity, making the advertisement more than mere puffery.

Lindley LJ addressed the question of acceptance and noted that while the general rule is that acceptance must be notified, the person making the offer can expressly or impliedly indicate that no notice is required. In this case, the inconvenience of performing the conditions specified in the offer was deemed sufficient consideration.

This case highlights that courts take policy considerations into account when determining the existence of an offer and acceptance, particularly in cases involving consumer protection against misleading or spurious advertisements. This case is often cited as a precedent for its clear recognition of unilateral contracts formed through advertisements and has had a lasting impact on contract law principles.

Check out our exam-focused Contract Law notes now.

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Carlill vs. Carbolic Smoke Ball Co. (Court of Appeal 1893) Case Summary

  • Bhoomika CB
  • Case Laws , Contract Law
  • May 6, 2021

carlill vs smoke ball co case summary

INTRODUCTION :

Carlill vs. Carbolic Smoke Ball case dealt with the question if to consider whether an advertising company gimmick can be considered as e xpress contractual promise to pay . Here since a unilateral contract was made, acceptance can be made without formal communication.

The defendant company that is Carbolic Smoke Ball Co. was a London based company. On November 13 th , 1891 they placed an advertisement in several newspapers stating that their product “The Carbolic Smoke Ball”, if used three times daily for two weeks then that person would not be affected by colds and influenza . The company additionally offered to pay 100£ as reward if anyone caught influenza using their product. They also guaranteed this reward by showing a bank statement saying they had already deposited 1000£ in the bank to show their sincerity. Lili Carlill, the plaintiff had bought this smoke ball and used it as directed by the company. Few weeks later, she caught flu.

LEGAL ISSUES:

  • Whether there was any binding effect of the contract between the parties? 
  • Whether the contract in question required a formal notification of acceptance ? 
  • Whether Mrs. Carlill was required to communicate her acceptance of the offer to the Carbolic Smoke Ball Company? 
  • Whether Mrs. Carlill provided any consideration in exchange for the reward of £100 offered by the company?

CONTENTIONS:

Defendant’s contentions –

  • The defendant company argued that the offer that they made didn’t have a binding impact in order to form a valid contract.
  • Secondly, they contended that there was no means of checking how the customer used the product or what procedure the customer used.
  • Thirdly, there was no contract since there was no intention to accept and there was no formal communication.
  • Thus the advertisement was just a marketing strategy and there was no intention to form any contract .

Plaintiff’s contentions –

  • Firstly, the plaintiff argued that promise was not vague and also the construction of the offer was clear which said if the product isn’t effective then the company would reward certain amount for the same.
  • Secondly, by depositing large amount in the Alliance bank account, proved the intention to form an agreement from one side.
  • Thirdly, the plaintiffs proved that consideration existed in the form of money paid to buy the smoke ball.
  • Thus, the advertisement was not merely an empty boast. It characterized all the essentials required to form a contract, more precisely a unilateral contract . Thus the company has to fulfill its part.

RATIO DECIDENDI :

The judges sitting to hear this case were Justice Lindley , Justice Bowen and Justice A.L Smith . All the 3 judges unanimously r ejected the arguments made by the defendants . The reasons given by the judges were:

  • To the entire world, the advertisement was a unilateral offer .
  • The acceptance of the offer satisfies the conditions required for using the smoke ball.
  • The purchasing or using the smoke ball can be considered as a good consideration .
  • The company’s deposit of £1000 in the Alliance bank showed the intention to be legally bound .

The court unanimously dismissed the appeal made by defendants and Mrs. Carlill received the compensation of £100. The judges stated that the advertisement shall be treated as an express promise and according to this promise; anyone who contracts the flu despite the preventive ability of the smoke ball as claimed by the company will be paid £100 provided that the ball is utilized as per the directions.

CONCLUSION :

The particular judgment made in Carlill v. Carbolic Smoke ball Co. made a huge impact on English contract law . This is the most cited case in the common law of contract mostly if the case is concerned with unilateral contracts. After this judgment the companies and agencies are more careful about what they advertise to the world at large. It lays foundation to contract law as all the essential elements are mentioned such as offer and acceptance , intention to form legal relationship etc.

BEST BOOK FOR CONTRACT LAW: Contract Law by RK Bangia (Latest Edition)

Bhoomika CB

  • case laws , contract act , contract law , contract law cases , offer and acceptance

case study of carlill vs carbolic smoke ball company

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CASE STUDY ON CARLILL v CARBOLIC SMOKE BALL CO.

CASE STUDY ON CARLILL v CARBOLIC SMOKE BALL CO.

Table of Contents

Carlill Vs Carbolic Smoke Ball Company [1892] EWCA Civ 1, [1893]1 QB 256

Lindley LJ,

And AL Smith LJ

This case looks at whether as a promoting contrivance (for example the guarantee to pay 100£ to anybody contracting flu while utilizing the Carbolic Smoke Ball) can be viewed as an express legally binding guarantee to pay.

Lindley, L.J., in the interest of the Court of Appeals, takes note of that the primary issue close by is whether the language in Defendant’s commercial, with respect to the 100£ prize, was intended to be an express guarantee or, rather, a business puff, which had no significance at all.

In this famous case, the defendant Carbolic smoke company made a product called a smoke ball, which they claim to cure influenza and some other diseases. The company advertises its product in some newspaper on November 13, 1891, claiming that they would pay £100 to anyone who after using their product according to the printed directions supplied by each ball gets sick with influenza or, any disease caused by taking cold. They even deposited £1000 with the Alliance Bank, Regent Street, showing their sincerity in the matter. The plaintiff Louisa Carlill, trusted in the exactness of the announcement made in the notice concerning the adequacy of the smoke ball in instances of flu and bought one packet and utilized as instructed however after certain days she had an assault of flu. Therefore, her husband wrote a letter on her behalf to the carbolic smoke company asking £100 which was promised in the newspaper. The lawyer representing Louisa Carlill argued the reliance of Louisa and the advertisement, so it was a contract between the company and the company ought to pay her. The lawyer representing the company argued that there was no serious contract between the parties.

CASES IN ARGUMENT:

Smith v Hughes (1871) LR 6 QB 597

Brogden v Metropolitan Rly Co (1876-77). LR 2 App Cas 666

 RESPONDENT’S ARGUMENT:

On request, the litigant’s case was that there was no coupling agreement between the gatherings. The respondent company had no methods for checking the ball, or of building up whether the offended party had in reality utilized the ball as coordinated. They additionally said that the offended party had not provided any consideration and that just doing a demonstration in private (for example adhering to guidelines) would not be sufficient. They contended, in the other option, that if the court saw there as an agreement, that agreement was close to a ‘wagering agreement’ in which obligation was simply decided on one issue – regardless of whether the offended party got flu or not – in which case it would be void, or that on the off chance that it was a protection strategy that it was ‘awful’ in light of the fact that it depended on whether there would be an event of a dubious occasion.

However, the court did not consider that the ‘wager’ or ‘insurance’ arguments were valid.

 JUDGEMENT:

The Court rejected the defendant’s appeal and ordered them to pay £100 to Louisa Carlill

The three judges gave the following reasons:

(1) That the advertisement in the newspaper was a unilateral offer to the entire world. So, anyone could accept that offer.

(2) The use of smoke balls as instructed constituted acceptance of the offer.

(3) That buying or only utilizing the smoke ball comprised good consideration, since it was a particular disservice brought about at the command of the organization and, besides, more individuals purchasing smoke balls by depending on the advert was a reasonable advantage to Carbolic.

(4) That the company showed reasonable intention to be legally binding by depositing £1000 in the bank

The judgments of the court were as follows.

Lord Justice Lindley

He excused the appeal. He, giving his decision first and reasons later, disclosed his judgment offering an explanation to all charges set up by the respondent’s guidance and maintaining the lower court’s choice. A portion which makes a quick work of the protection and betting agreement that was managed in the Queen’s Bench. Be that as it may, there is likewise another view to this point which Judge Lindley suitably attests: shouldn’t something be said about the individual who puts himself/herself in an inconvenient, if not adverse to his wellbeing, while at the same time breathing in powerful vapor of carbolic gas? So consequently there is sufficient thought to this guarantee.

Lord Justice Bowen

He agreed with Lindley, L.J. He was of a similar conclusion however he additionally talked about scarcely any focuses as for unclearness and timespan of the agreement. His opinion was more tightly structured in style and frequently cited. He, excusing defense’s council guarantee, depended on his development of the report and he said that there is no time limit fixed for getting flu, and it can’t truly be intended to vow to pay cash to an individual who gets flu whenever after the breathing in of the smoke ball.

Lord Justice AL Smith

His judgment was broad and agreed with both Lindley LJ and Bowen LJ’s choices. According to him, there were two considerations there. One is the consideration of the inconvenience of having to use this carbolic smoke ball for two weeks three times a day; and another more important consideration is the money gain likely to accrue to the defendants by the enhanced sale of the smoke balls, because of the plaintiff’s use of them. There is an ample consideration to support this promise.

SIGNIFICANCE:

The Carlill case played a  huge role in building up the law of unilateral offers and established the framework for the advanced act of banning misdirecting promoting. Carlill is referred to as the main case in the precedent-based law of agreement, especially where unilateral contracts are concerned. This is maybe because of the technique of Counsel for the Defendant in running pretty much every accessible safeguard, requiring the court to manage these focuses thus in the judgment.

The impacts of this judgment despite everything still felt today. It gives a superb study of the essential standards of agreement and how they identify with regular day to day existence. The case stays a great law. It despite everything ties the lower courts of England and Wales and is referred to by decided with endorsement. Nonetheless, notwithstanding the authoritative cure stood to clients, similar realities would offer ascent to some of extra-legal cures and disciplines were a person to put an advert in similar terms today.

Author: Sanidhya Pateriya, School of Law, Jagran Lakecity University/ 1st year

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Carbolic Smoke Balls and snake oil: Patanjali joins a long history of dubious medicinal advertising

Like in the us and uk, ads for snake bites, diabetes and other fantastical claims were rampant in india. laws passed since have been unable to curb this..

Carbolic Smoke Balls and snake oil: Patanjali joins a long history of dubious medicinal advertising

In 1893, Clark Stanley gained attention as he introduced the American public to a product that he claimed would cure a variety of ailments – pain, lameness, sprains, animal bites and much more.

Appearing at events known as medicine shows, he would put snakes into boiling water. When the oil rose to the top, he would take it out and mix it into a special liquid. Stanley came to be known as the Rattle Snake King.

But in 1916, he was exposed as a fraud. His concoction was found to have no medicinal value and “snake oil” went on to become a synonym for fraudulent products with deceptive marketing.

In April, as India’s Supreme Court ordered Patanjali proprietor Ramdev and his associate Balkrishna to issue an unconditional public apology for its “ misleading advertisements ”, it served as a reminder that deceptive public notices by the pharmaceutical sector have a long history – as do attempts to curb them.

Clark Stanley’s Snake Oil Liniment was not the only dubious medicinal product on the US market at the time. Dr Morse’s Indian Root Pills, Lydia Pinkham’s Herb medicine and Kickapoo’s Indian Sangwas Medicines were also advertised with exaggerated or entirely false assertions about their healing abilities.

These concoctions came to be known as “patent medicines”, even though they were legally not patented and their medicinal properties were unproven.

case study of carlill vs carbolic smoke ball company

However, in a few years, the rising concerns about these products and advertisements created a widespread public backlash. In 1905, Collier’s Weekly magazine published an expose titled “ The Great American Fraud ”. The series aimed to bring to light the dubious business practices of leading “patent medicine” manufacturers.

The inflated claims by these medicines were shown to be pseudoscience, backed by scant medical evidence. The series also established the grave public health risks posed by these remedies.

The expose led to two important developments. In 1906, US President Theodore Roosevelt signed the Pure Food and Drug Act to address the problem of misleading advertisements and dangerous products. This law required accurate labelling of ingredients on food and drug products.

Secondly, and more importantly, the dangers of magic remedies were etched in the public imagination and experience. “Snake oil” came to be widely accepted in various dictionaries as something “that someone tries to sell you, but that is not effective or useful”.

case study of carlill vs carbolic smoke ball company

On the other side of the Atlantic, the United Kingdom had its own share of “patent medicines”. In the 19th century, deceptive advertising had failed to be curbed by regulations such as the Poisons and Pharmacy Act, 1868, Sale of Food and Drugs Act, 1875 and the Indecent Advertisement Act, 1889.

While the Sale of Food and Drugs Act, 1875 regulated adulteration, it did not address the rising problem of misleading pharmaceutical ads. Similarly, while the Poisons and Pharmacy Act, 1868, empowered the Privy Council to add poisons to the Schedule under the Act, but it did not mandate labelling requirements. The Indecent Advertisement Act addressed only ads that were of “indecent or obscene nature”.

A typical example of the prevalent misleading “patent medicine” advertisements was the case of Carbolic Smoke Ball. In the 19th century, Frederick Augustus Roe introduced the Carbolic Smoke Ball, which was advertised as a preventive remedy against illnesses such as influenza, cold, cough and asthma.

The device – a small sphere with a nozzle – would release carbolic acid when pressed. It gained widespread currency in 1889-’90, when the Russian flu had taken its grip on Britain. This was despite the corrosive nature of carbolic acid, which was often used in surface cleaners.

case study of carlill vs carbolic smoke ball company

COMMENTS

  1. Carlill v Carbolic Smoke Ball Co

    Carlill v Carbolic Smoke Ball Company Court of Appeal Citations: [1893] 1 QB 256. Facts The defendant sold a medicine which they called a 'Carbolic Smoke Ball'. When they advertised the product, they stated that they would pay a sum of money to any person who used it and still caught influenza. They claimed that….

  2. Carlill v Carbolic Smoke Ball Co

    Carlill v Carbolic Smoke Ball Company [1893] 1 QB 256 is an English contract law decision by the Court of Appeal, which held an advertisement containing certain terms to get a reward constituted a binding unilateral offer that could be accepted by anyone who performed its terms. It is notable for its treatment of contract and of puffery in advertising, for its curious subject matter associated ...

  3. Carlill v. Carbolic Smoke Ball Co.

    Citation1 Q.B. 256 (Court of Appeal 1893) Brief Fact Summary. The Plaintiff, believing Defendant's advertisement that its product would prevent influenza, bought a Carbolic Smoke Ball and used it as directed from November 20, 1891 until January 17, 1892, when she caught the flu. Plaintiff brought suit to recover the 100£, which the Court found.

  4. Carlill v. Carbolic Smoke Ball Co.

    Carlill v. Carbolic Smoke Ball Company held that an advertisement, in the absence of language stating otherwise, is an offer of a valid contract that is accepted upon performance. Summary: Newspaper Ad from Carbolic Smoke Ball Company. The defendant, the Carbolic Smoke Ball Company, released an advertisement stating that a "£100 reward will ...

  5. Case analysis of Carlill v. Carbolic Smoke Ball Co

    The plaintiff Carllil followed all the procedures of using the carbolic smoke ball. Even after following the procedure she still caught the flu. Consequently, she filed a suit against the Carbolic Smoke Ball Company. Her claim was £100 from the company as the company advertised their product as such.

  6. Carlill v Carbolic Smoke Ball Co (1893): Case Summary and Legal Principles

    The judgment in Carlill v Carbolic Smoke Ball Co. established the principle that an advertisement can constitute a binding contract if it contains clear and specific terms and indicates an intention to be bound. The court held that the advertisement in this case constituted a binding contract, and Mrs. Carlill was entitled to the promised reward.

  7. Carlill v Carbolic Smoke Ball Co

    Facts. The defendant, the Carbolic Smoke Ball Company, placed an advertisement in a newspaper for their products, stating that any person who purchased and used their product but still contracted influenza despite properly following the instructions would be entitled to a £100 reward. The advert further stated that the company had demonstrated ...

  8. Carlill v. Carbolic Smoke Ball Co. (1893)

    Carlill's use of the smoke ball as stipulated was the acceptance of the offer through performance, and her reliance on the promise was the consideration. Conclusion: The court concluded that there was a legally binding unilateral contract between Carlill and the Carbolic Smoke Ball Company, and as such, the company was required to pay the £ ...

  9. Case Summary: Carlill vs. Carbolic Smoke Ball Company

    Prior Actions: Carlill v Carbolic Smoke Ball Co [1892] 2 QB 484. Defendant: Carbolic Smoke Ball Company. Brief Facts Summary: The plaintiff believing the advertisement in a newspaper stating the use of the smoke ball would prevent the influenza and flu. She used the smoke ball as prescribed in the advertisement for some time and still had an ...

  10. Carlill v Carbolic Smoke Ball Co [1893] 1 QB 256 Case Summary

    Mrs. Carlill, the plaintiff, purchased and used the smoke ball according to the instructions provided. Unfortunately, she still caught the flu, and she claimed the £100 reward as advertised by the company. Carbolic Smoke Ball Co, however, refused to pay the reward, arguing that the advertisement was merely a puff or a sales gimmick and not a ...

  11. Quackery and Contract Law: The Case of the Carbolic Smoke Ball

    of Carlill v. Carbolic Smoke Ball Company.' Continuously studied though it has been by lawyers and law students for close to a century, it has never been investigated historically. Even the form taken by the celebrated smoke ball itself remains a mystery, as indeed it was in 1892 at least to one of the members of the Court of Appeal who decided ...

  12. Quackery and Contract Law: Carlill v. Carbolic Smoke Ball Company (1893

    All lawyers, and indeed many non-lawyers, are familiar with the case of Carlill v.Carbolic Smoke Ball Company, 1 which was before the courts in 1892 and 1893. Continuously studied though it has been by lawyers and law students for close to a century, an air of mystery long surrounded the case; even at the time the very form taken by the celebrated smoke ball was unknown to Lindley LJ, who ...

  13. Carlill v Carbolic Smoke Ball

    The claim. Mrs Carlill sued, arguing that there was a contract between the parties, based on the company's advertisement and her reliance on it in purchasing and using the Smoke Ball. It was argued: The advertisement was clearly an offer; it was designed to be read and acted upon and was not an empty boast.

  14. Carlill v Carbolic [1892]

    February 15, 2023. Carlill v Carbolic Smoke Ball Co [1893] 1 QB 256 is a landmark case in contract law that established the principle that an advertisement containing a promise conditional upon some form of performance can constitute an offer of a unilateral contract. The case involved the Carbolic Smoke Ball, a product advertised as a ...

  15. PDF LOUISA CARLILL V. THE CARBOLIC SMOKE BALL COMPANY

    CASE ANALYSIS www.judicateme.com LOUISA CARLILL V. THE CARBOLIC SMOKE BALL COMPANY ((1892) EWCA Civil 1) ((1893) 1 QB 256) BENCH - Court of Appeal JUDGE-Lindley LJ, Bowen LJ, AL Smith LJ DATE- 8th December 1892 FACTS (1) The company made a product called "Smoke Ball". It claimed to be a cure to influenza and

  16. PDF Carlill v Carbolic Smoke Ball Co

    Carlill v Carbolic Smoke Ball Co. [1893] 1 QB 256. Chapter 5 (pp 206, 209, 216, 218) Relevant facts. On 13 November 1891, Carbolic Smoke Ball Co ('CSBC') placed an advertisement in the 'Pall Mall Gazette' which included the following: 100 pounds reward will be paid by the Carbolic Smoke Ball Co. to any person who contracts the ...

  17. Carlill v Carbolic Smoke Ball Co [1892] EWCA Civ 1

    Carlill v Carbolic Smoke Ball Company is a seminal case in English contract law and remains an important case for law students to study. The case provides a clear example of how offer and acceptance works in practice and highlights the importance of clear and unambiguous advertisements in the formation of contracts.

  18. Carlill v Carbolic Smoke Ball Company [1893] 1 QB 256

    Facts. D sold the 'carbolic smoke ball' and advertised it in the newspaper, stating that £100 will be paid to any person that contracts influenza, colds or associated diseases after using the ball 3 times daily for 2 weeks, and that £1000 is deposited in the Bank showing their sincerity. C bought one of the balls at the chemist's and ...

  19. Contracts : Carlill v. Carbolic Smoke Ball Co.

    Carlill v. Carbolic Smoke Ball Co. Charles Fried. This book, and all H2O books, are Creative Commons licensed for sharing and re-use with the exception of certain excerpts. Any excerpts from the Restatements of the Law, Principles of the Law, and the Model Penal Code are copyright by The American Law Institute. Excerpts are reproduced with ...

  20. CARLILL VS CARBOLIC SMOKE BALL CO. EXPLAINED

    This video explains the case study "CARLILL VS CARBOLIC SMOKE BALL CO."-----...

  21. Carlill vs. Carbolic Smoke Ball Co. (Court of Appeal 1893) Case Summary

    INTRODUCTION:. Carlill vs. Carbolic Smoke Ball case dealt with the question if to consider whether an advertising company gimmick can be considered as express contractual promise to pay.Here since a unilateral contract was made, acceptance can be made without formal communication.. FACTS: The defendant company that is Carbolic Smoke Ball Co. was a London based company.

  22. CASE STUDY ON CARLILL v CARBOLIC SMOKE BALL CO.

    Carlill Vs Carbolic Smoke Ball Company[1892] EWCA Civ 1, [1893]1 QB 256. BENCH: Lindley LJ, Bowen LJ. And AL Smith LJ . SYNOPSIS: This case looks at whether as a promoting contrivance (for example the guarantee to pay 100£ to anybody contracting flu while utilizing the Carbolic Smoke Ball) can be viewed as an express legally binding guarantee to pay.

  23. Memorandum of advice 2 (docx)

    For instance, in the case of Carlill v Carbolic Smoke Ball Company [1893] 1 QB 256, the court held that an advertisement could constitute a unilateral contract if it was clear, definite, and made with an intention to be bound [11]. Acceptance occurs when the offeree unequivocally agrees to the terms of the offer [9]. Consideration refers to ...

  24. BUS-FPX3021KellyAmandaAssessment1-1 (docx)

    Case Law Analysis and Executive Briefing Carlill v. Carbolic Smoke Ball Co. 1 Q.B. 256 (1893). Parties: Louisa Elizabeth Carlill and Carbolic Small Ball Co. Court and Date Decided: Court of Appeal (Decided December 7, 1893) Background Facts: Mrs. Carlill took legal action against Carbolic Small Ball Co. for a breach in contract. Carbolic Small Ball Co. had advertised that their product was a ...

  25. Carbolic Smoke Balls and snake oil: Patanjali joins a long history of

    The outcome of the case is well known: Mrs. Carlill was awarded the £100 reward, despite Carbolic Smoke Ball's claim that the advertisement was "puffery".