Carill V Carbolic Smokeball Case Study

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“The case of Carlill V carbolic Smokeball Company is considered a land mark in the English Law of contracts.” Analyze the above statement by explaining the facts of the case and by discussing the three significant legal principles which were upheld in this case. A brief Introduction on the Law of Contracts: A contract is an agreement which has its specified terms and conditions between two or more parties in which there is a promise to do something in return for a benefit. This case mentioned below is a fine example of understanding the Law of Contract in a better manner. (Gerald, 2014). Introduction Carlill V Carbolic Smokeball Company This case, Carlill V Carbolic Smokeball Company took place in Court of Appeal against a decision made in the district court. Carlill the plaintiff who is the party filling the case went against the defendants who was carbolic smokeball Company due to a breach of contract. Carbolic Smokeball Company manufactured and sold The Carbolic Smokeball for the prevention of contraction of influenza. The company placed advertisements in various newspapers awarding a hundred pounds for anyone who was contracted with influenza after the usage of the Carbolic Smokeball as per instructed and they also deposited thousand dollars in the Bank to show their sincerity to this matter. After seeing this, plaintiff Carlill purchased the Carbolic Smokeball and used it as instructed. But though she used it as instructed she was still contracted with influenza and made a claim for the reward. Carbolic Smokeball Company refused to pay the promised reward and Carlill sued the company for damages arising from breach of contract. Judgment for hundred pounds was entered and the Carbolic Smokeball Company appealed. (Lawnix, 20... ... middle of paper ... ...on Therefore the Lordship concluded that the defendants, that is the Carbolic Smokeball Company should present the promised reward as stated to the plaintiff Ms. Carlill. This judgment given set criterion which is still been used in the modern court system and due to this case it was developed that an offer of contract can be unilateral and doesn’t have to be made to a specific party only. Also it was developed to that the acceptance of an offer does not require a notification and that once the concerned party purchases the product the contract is active then and there itself. And it was also established that purchase of an item is a fine example of consideration and therefore makes it a valid contract. (Smith, 2000). By understanding the above given details, we can conclude that this case Carlill V Carbolic Smokeball Company was a landmark in the Law of Contracts.

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