In the classic case of Carlill v. Carbolic Smoke Ball Company, the defendants manufactured a product they claimed would protect against influenza. The company advertised that it would pay a specific sum of money to anyone who contracted influenza while using their product, and put money on deposit to demonstrate their sincerity. When Mrs. Carlill claimed the money, the company argued that these statements were not intended to be taken seriously. What did the Court decide?
A) There was intention because a reasonable person would have thought that the advertisement was serious.
B) There was no intention because the company did not intend for the statements to be taken seriously.
C) There was no intention because the claims made by the company were not put into a standard form agreement.
D) There was intention because Mrs. Carlill took the advertisement seriously.
E) Intention is irrelevant to whether or not a contract is valid.

Question

Quizplus · Accepted Answer

The Court decided that there was intention because a reasonable person would have thought that the advertisement was serious. The fact that the company put money on deposit to demonstrate their sincerity further supported the argument that they intended for their statements to be taken seriously. This case established the principle of unilateral contracts, where a promise made in an advertisement can be binding if the offeree accepts the offer through performing the requested action.

In the Classic Case of Carlill V