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Paper on Advertisement Case of Carlill

   

Added on  2020-04-07

11 Pages3225 Words180 Views
Running head: CARLILL V CARBOLIC SMOKE BALL CO1Carlill v Carbolic Smoke Ball CoAuthor Name(s)Institutional Affiliation(s)Author Note

CARLILL V CARBOLIC SMOKE BALL CO2AbstractAny person engaging in the advertisement should be able to differentiate between potential offers and business invitations to treat. The principles underlying the two are different, but sometimes it is difficult to distinguish them especially when the wording of the advertisement looks a bit confusing. An invitation to treat does not have the capabilities of provoking an acceptance from the promisee. It is merely a situation where one party asks the other to come and make an offer. The second party has the right to accept or ignore the invitation without any legal repercussion. However, if the party tendering the invitation makes it look like an offer, the acceptance that may result from the other party will lead to a legally binding agreement. This paper will take a critical position in analyzing the case of Carlill V Carbolic Smoke Ball Co. The paper will review the reasons why the court decided that the invitation to treat was a potential offer. Ultimately, the paper will look at the significance of this case to Australian law.Keywords: Invitation to treat, Offer, Acceptance, Consideration

CARLILL V CARBOLIC SMOKE BALL CO3Carlill v Carbolic Smoke Ball CoBusiness may be intending to use advertisements as invitations to treat. That is, inviting customers to come and open negotiations before concluding a contract. However, there is a need to take the form, factual context and the wording of these advertisements seriously. This paper will use the case of Carlill in analyzing how and when an advertisement will amount to an offer. Iwill also look at the significance of this case to Australian law.Summary of Carlill v Carbolic Smoke Ball CoThis authority arose from Carbolic Smoke Ball Company’s invention of a device that they claimed it could prevent influenza. They made an advertisement of their device in the newspaper affirming that they would pay £100 to anyone who contracted influenza having their devices. Users had to use the device thrice a day for 14 days. In the advertisement, the company stated that it had already deposited £1000 as a confirmation for their sincerity. Louisa Carlill contracted even after using the device as per the instructions. She brought a claim for a breach ofthe contract. To her favor, the court found the advertisement as a unilateral offer made to the entire world at large. The fact that the defendant had even deposited £1,00 affirmed that he was ready for any claim for breach of the contract. The court allowed the claim, and Carbolic company was liable for breach.Subsequent Impact of Carlill On Contracts Law In Australia And The Nature Of A Legally Binding AgreementThe significance of this case in Australian contract law and the nature of a binding agreement is seen in three distinct issues. The first one is the principles of unilateral contract. The second issueis the distinction between a promise and puff. Unilateral contracts happen where one party provides a promise while the other party proceeds to the performance (Barron, 2013). The

CARLILL V CARBOLIC SMOKE BALL CO4bargain of this contract is completed by the performance of the promisee as requested by the promisor (Roberts, 2017). One example is where a person loses his wallet. Then the person statesthat he will pay $100 to whoever finds the wallet. There would be no need for the finder to communicate his entrance to the search. A finder just need to search for the wallet and bring it to the owner. Upon delivery, the finder becomes entitled to $100. One main relevance laid out by this authority regards acceptance of an offer. The original rule requires notification of acceptanceto the promisor. This communication creates what the law calls the meeting of minds (Graw, Parker, Whitford, Sangkuhl & Do, 2012). The law makes acceptance a requirement to create a binding acceptance. This case brought a different development regarding the binding of agreements where notice of acceptance would not be necessary. Bowen LJ stated that there are some situations where the performance of acceptance would become a notification (Miles & Dowler, 2013).The next development that this case enlightened on was the issue of promises and puffery. The concept of a "puff" that this case developed remained as a rule in marketing and advertising laws ever since (Khoury & Yamouni, 2010). Lord Justice A L Smith noted the law regards advertisements as an invitation to treat but not an offer. However, that advertisement of the smokeball seemed more of a request for acceptance. The sincerity of this offer was even demonstrated by depositing the money at the bank. This was contrary to the rules guiding the useof pufferies. The principle laid the authority in cases where a mere puff can convert to an offer.Significance of Carlill v Carbolic Smoke Ball Co. Ltd in Australian Courts.The case of Carlill v Carbolic Smoke Ball Co. Ltd is significant to Australian courts in different ways. For one, this is a landmark decision that brought several rules regarding the formation of a contract as derived from the defense side.

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