The Four Step Process Of The Case Of Carlill V. Carbolic Smoke Ball Company

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Question 1 Using the 4 step process, consider whether the element of agreement required for the formation of legally enforceable contract has been satisfied in the above scenario involving Isabella and Sienna. Step 1 The area of law that is required in order to form a legally enforceable contract is agreement. Step 2 Agreement is a mutual understanding of two parties and willing to accept terms and conditions in order to form a legal contract (Penthony et al.2014). Agreement consists of two components; offer and acceptance. Offer is made by an offeror in an exchange for performance from another party on certain terms while acceptance is the action of accepting to the terms of the offer. An offer must follow the requirement in order to form …show more content…

2014). In the case of Carlill v Carbolic Smoke Ball Co (1893) 1 QB 256, the company produced Carbolic Smoke Ball saying it can prevent from contracting influenza. They then advertised in newspaper telling that 100 pound will be given if people used this ball three times daily for two weeks as instructed and still caught influenza. Carlill bought and used the ball as instructed, however she still caught influenza. Hence, she asked for the rewards from the company. However, the company refused to pay and the issue was brought to court. According to court, Mrs Carlill was entitled to the reward as the advertisement was an offer made to everyone who saw it. Therefore, it was intended to be legally …show more content…

2014). Moreover, binding contract is made at the time and place when the letter of acceptance is posted. In the case of Adams v Lindsell (1818) 106 ER where Lindsell wrote to Adam offering him some wool and asked him to reply by post too. However, Lindsell’s letter was delayed in the post. The day Adam received the letter, he immediately replied with an acceptance letter but before it could reach Lindsell, she had sold the wool to other party. This leads Adam to sue Lindsell for breaching of contract. The court is on Adam’s side as there was an agreement made the moment he posted the acceptance letter to Lindsell (the postal acceptance rule). Moreover, Lindsell cannot argue the mode of acceptance used by Adam as she was the one asking him to do

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