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Wednesday 16 December 2009

CONTRACT ACT, 1950 (Revision)

Carbolic Smoke Ball Co. Ltd. advertised that they would offer £1,000 to anyone who still succumbed to influenza after using a certain remedy for a fixed period. The plaintiff duly used it but, nevertheless, contracted influenza. The plaintiff then sued for the money. The Court of Appeal held the plaintiff was entitled to the £1,000 as she had accepted the offer made to the world at large.

In this case, the advertisement of an unilateral contract was held to be an offer.

Advertisement is an offer or an invitation to treat (ITT) depends on the intention of the parties in each case. The courts have held that advertisements of bilateral contracts are not offers whereas advertisements of unilateral contracts are construed to be offers.

Dude,thanks
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