Carlill V Carbolic Smoke Ball Co. Essay

327 WordsJan 12, 20122 Pages
IRAC: CARLILL V CARBOLIC SMOKE BALL CO. ISSUE: Can an advertisement constitute an offer of a unilateral contract when the acceptance is not formally communicated to the offeror? RULE: Notification of acceptance is required under our law. The person who makes the offer may dispense with notice to himself if he thinks it desirable to do so. He may expressly or impliedly create any method of acceptance for his offer. An offeree need only follow the method indicated for acceptance. The requirement of notice of acceptance to the offeror must be determined by an objective reasonable person standard. ANALYSIS: The court held that a person who makes an offer may decline to require notice of acceptance if he or she wishes. One who makes an offer dispenses with the requirement of notice of acceptance if the form of the offer shows that notice of acceptance is not required. To accept an offer, a person need only follow the indicated method of acceptance. If the offeror either expressly or impliedly intimates in his offer that it will be sufficient to act without giving notice of acceptance, performance is sufficient acceptance without notification. The court held that an advertisement is considered to be an offer when it specifies the quantity of persons who are eligible to accept its terms. If such an advertisement requires performance, the offeree is not required to give notice of his performance. The court addressed the issue of whether the ad was intended to be a promise or whether it was merely “puffing”. The court pointed to Carbolic Smoke Ball’s claim in the advertisement that it had deposited 1000 pounds with Alliance Bank, which the court decided was intended to demonstrate the company’s sincerity in paying the reward. CONCLUSION: Yes. One who makes a unilateral offer for the sale of goods by means of an advertisement impliedly waives notification of

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