The Contract Act, 1872. (Problem Solving, Topic-General Offer)(BJS Preparation)
BJS Exam (Preliminary, Written, Viva) Preparation Series
Question: A company advertised that the company would pay Tk. One lakh to anyone who contracted influenza after having used the smoke balls. ‘X’ used the smoke ball according to its instructions but contacted influenza. She claimed the reward offered by company. Is ‘X’ entitled to reward? Give reasons and also refer case-law, if any, on the point.
Answer:
Yes, ‘X’ is entitled to reward offered by company-Carlill v. Carbolic Smoke
Ball Company, 1930 WN 189.
Reasons: An offer may be specific or general. Salmond says that a general offer
is an offer which is made to the world at large. A general offer may be
accepted by any one by fulfilling the conditions of offer and it is not
necessary to give the notice of acceptance to the offeror in case of general
offer.
The
facts of this problem have been taken from the famous case of Carlill v. Carbolic Smoke Ball Company, referred above. In this case Carbolic
Small Ball Co. announced an award to anyone who contacted influenza after using
the smoke balls of the company. Mrs. Carlill contracted influenza even after
using the Smoke Balls for the period prescribed by the company. Mrs. Carlill
sued the company for reward. It was argued on behalf of the company that Mrs.
Carlill did not give notice regarding acceptance of the offer. Hence, she is
not entitled to the amount of reward.
But the
court held that it is a case of general offer and Mrs. Carlill constituted
acceptance of the offer by conduct by using Smoke Balls of the Co. and no
formal notice of acceptance is necessary in this case and she is entitled to
reward offered by company.
On the
basis of decision given in famous case of Carlill
v. Carbolic Small Ball Company, it
can be said that in the instant problem also, ‘X’ is entitled to reward claimed
by him because a binding contract exists between ‘X’ and Co. as the offer by company
was general in nature, ‘X’ accepted the offer by conduct (using the Smoke
Balls) and it is not necessary to give information to offeror regarding
acceptance.
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