Multiple choice

Fact: The carbolic Smoke Ball co. offered by advertisement, a reward of £ 100 to any person who should contract influenza after having used the smoke-ball three times daily for two weeks according to the printed directions. It also added that £ 100 have been deposited in the bank showing Mrs Carlill used the smoke - ball according to the directions to the company but contracted influenza. Issue: is Company liable to give the reward and Mrs Carlill is entitled to award?

  1. Yes, company is liable. Mrs Carlill is entitled to the reward because the performance of the conditions is a sufficient acceptance without notification.

  2. Company is not liable

  3. Mrs Carlill is not entitled because there is no valid contract.
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A Correct answer
Explanation

Carlill v Carbolic Smoke Ball: An advertisement offering a reward for performing specified conditions can constitute a unilateral offer. Performance of the conditions (using the smoke ball as directed) constitutes acceptance without prior notification. The bank deposit statement shows serious intention, making it a valid offer.

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