ACCA LW · Chapter 2 · Question 2 of 12
In Carlill v Carbolic Smoke Ball Co, why was the advertisement held to be an offer rather than an invitation to treat?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) It was a unilateral offer to the world, made with clear intention to be bound, which could be accepted by performing the stated conditions
Explanation
The advertisement promised a reward to anyone who used the smoke ball as directed and still caught influenza, and the deposit of money with the bank showed an intention to be bound. A unilateral offer can be made to the world at large and is accepted by performing the act; notification of acceptance is waived. Most advertisements are invitations to treat (Partridge v Crittenden), so the outcome depended on the wording.
More Formation of contract MCQs
- Q4Chen posts a letter accepting an offer on Monday. The letter is properly addressed and stamped but is lost in the post and never arrives…
- Q5On 1 May Dev offers to sell land to Eve and promises to keep the offer open until 10 May. Eve gives nothing for this promise. On 5 May Eve…
- Q6Which of the following statements about acceptance is correct?
- Q7Which of the following best describes the rule that consideration 'must be sufficient but need not be adequate'?
- Q8A builder agrees to build flats for a fixed price. Part way through, the builder runs into financial difficulty and the client, fearing…