Special Issue – 135 Years of The Law Reports and The Weekly Law Reports
[IN THE COURT OF APPEAL.]
CARLILL v. CARBOLIC SMOKE BALL COMPANY.
1892 Dec. 6, 7.
LINDLEY, BOWEN and A. L. SMITH, L.JJ.
Contract
- Offer by Advertisement - Performance of Condition in Advertisement -
Notification of Acceptance of Offer - Wager - Insurance - 8 & 9 Vict. c. 109 - 14 Geo. 3, c. 48, s. 2.
The defendants, the proprietors of a
medical preparation called "The Carbolic Smoke Ball," issued an advertisement in
which they offered to pay 100l. to any person who contracted the influenza after
having used one of their smoke balls in a specified manner and for a specified
period. The plaintiff on the faith of the advertisement bought one of the balls,
and used it in the manner and for the period specified, but nevertheless
contracted the influenza:- Held, affirming the decision of Hawkins,
J., that the above facts established a contract by the defendants to pay the
plaintiff 100l. in the event which had happened; that such contract was neither
a contract by way of wagering within 8 & 9 Vict. c. 109, nor a policy within
14 Geo. 3, c. 48, s. 2; and that the plaintiff was entitled to recover.
APPEAL from a decision of Hawkins, J.1 The defendants, who were the
proprietors and vendors of a medical preparation called "The Carbolic Smoke
Ball," inserted in the Pall Mall Gazette of November 13, 1891, and in
other newspapers, the following advertisement: "100l. reward will be paid by the
Carbolic Smoke Ball Company to any person who contracts the increasing epidemic
influenza, colds, or any disease caused by taking cold, after having used the
ball three times daily for two weeks according to the printed directions
supplied with each ball. 1000l. is deposited with the Alliance Bank, Regent
Street, shewing our sincerity in the matter. "During the last epidemic of
influenza many thousand carbolic smoke balls were sold as preventives against
this disease, and in no ascertained case was the disease contracted by those
using the carbolic smoke ball. "One carbolic smoke ball will last a family
several months, making it the cheapest remedy in the world at the price, 10s.,
post free. The ball can be refilled at a cost of 5s. Address, Carbolic Smoke
Ball Company, 27, Princes Street, Hanover Square, London." The plaintiff, a
lady, on the faith of this advertisement, bought one of the balls at a
chemist's, and used it as directed, three times a day, from November 20, 1891,
to January 17, 1892, when she was attacked by influenza. Hawkins, J., held that
she was entitled to recover the 100l. The defendants appealed.
Finlay, Q.C., and T. Terrell, for the defendants. The
facts shew that there was no binding contract between the parties. The case is
not like Williams v. Carwardine 4 B. & Ad. 621, where the money was to become
payable on the performance of certain acts by the plaintiff; here the plaintiff
could not by any act of her own establish a claim, for, to establish her right
to the money, it was necessary that she should be attacked by influenza - an
event over which she had no control. The words express an intention, but do not
amount to a promise: Week v. Tibold. 1 Roll. Abr. 6 (M.) The present case is
similar to Harris v. NickersonLaw Rep. 8 Q. B. 286. The advertisement is too vague to be
the basis of a contract; there is no limit as to time, and no means of checking
the use of the ball. Anyone who had influenza might come forward and depose that
he had used the ball for a fortnight, and it would be impossible to disprove it.
Guthing v. Lynn 2 B. & Ad. 232 supports the view that the terms are too vague to
make a contract, there being no limit as to time, a person might claim who took
the influenza ten years after using the remedy. There is no consideration moving
from the plaintiff: Gerhard v. Bates 2 E. & B. 476. The present case differs from
Denton v. Great Northern Ry. Co. 5 E. & B. 860, for there an overt act was done by
the plaintiff on the faith of a statement by the defendants. In order to make a
contract by fulfilment of a condition, there must either be a communication of
intention to accept the offer, or there must be the performance of some overt
act. The mere doing an act in private will not be enough. This principle was
laid down by Lord Blackburn in Brogden v. Metropolitan Ry. Co2 App. Cas. 666. The
terms of the advertisement would enable a person who stole the balls to claim
the reward, though his using them was no possible benefit to the defendants. At
all events, the advertisement should be held to apply only to persons who bought
directly from the defendants. But, if there be a contract at all, it is a
wagering contract, as being one where the liability depends on an event beyond
the control of the parties, and which is therefore void under 8 & 9 Vict. c. 109. Or, if not, it is bad under 14 Geo. 3, c. 48, s. 2, as being a policy of
insurance on the happening of an uncertain event, and not conforming with the
provisions of that section. Dickens, Q.C., and W. B. Allen,
for the plaintiff. [THE COURT intimated that they required no argument as to the
question whether the contract was a wager or a policy of insurance.] The
advertisement clearly was an offer by the defendants; it was published that it
might be read and acted on, and they cannot be heard to say that it was an empty
boast, which they were under no obligation to fulfil. The offer was duly
accepted. An advertisement was addressed to all the public - as soon as a person
does the act mentioned, there is a contract with him. It is said that there must
be a communication of the acceptance; but the language of Lord Blackburn, in
Brogden v. Metropolitan Ry. Co.2 App. Cas. 666, shews that merely doing the acts
indicated is an acceptance of the proposal. It never was intended that a person
proposing to use the smoke ball should go to the office and obtain a repetition
of the statements in the advertisement. The defendants are endeavouring to
introduce words into the advertisement to the effect that the use of the
preparation must be with their privity or under their superintendence. Where an
offer is made to all the world, nothing can be imported beyond the fulfilment of
the conditions. Notice before the event cannot be required; the advertisement is
an offer made to any person who fulfils the condition, as is explained in
Spencer v. HardingLaw Rep. 5 C. P. 561. Williams v. Carwardine 4 B. & Ad. 621 shews strongly
that notice to the person making the offer is not necessary. The promise is to
the person who does an act, not to the person who says he is going to do it and
then does it. As to notice after the event, it could have no effect, and the
present case is within the language of Lord Blackburn in
Brogden v. Metropolitan Ry. Co.2 App. Cas. 666 It is urged that the terms are too
vague and uncertain to make a contract; but, as regards parties, there is no
more uncertainty than in all other cases of this description. It is said, too,
that the promise might apply to a person who stole any one of the balls. But it
is clear that only a person who lawfully acquired the preparation could claim
the benefit of the advertisement. It is also urged that the terms should be held
to apply only to persons who bought directly from the defendants; but that is
not the import of the words, and there is no reason for implying such a
limitation, an increased sale being a benefit to the defendants, though effected
through a middleman, and the use of the balls must be presumed to serve as an
advertisement and increase the sale. As to the want of restriction as to time,
there are several possible constructions of the terms; they may mean that, after
you have used it for a fortnight, you will be safe so long as you go on using
it, or that you will be safe during the prevalence of the epidemic. Or the true
view may be that a fortnight's use will make a person safe for a reasonable
time. Then as to the consideration. In Gerhard v. Bates 2 E. & B. 476, Lord
Campbell never meant to say that if there was a direct invitation to take
shares, and shares were taken on the faith of it, there was no consideration.
The decision went on the form of the declaration, which did not state that the
contract extended to future holders. The decision that there was no
consideration was qualified by the words "as between these parties," the
plaintiff not having alleged himself to be a member of the class to whom the
promise was made. Finlay, Q.C., in reply. There is no binding
contract. The money is payable on a person's taking influenza after having used
the ball for a fortnight, and the language would apply just as well to a person
who had used it for a fortnight before the advertisement as to a person who used
it on the faith of the advertisement. The advertisement is merely an expression
of intention to pay 100l. to a person who fulfils two conditions; but it is not
a request to do anything, and there is no more consideration in using the ball
than in contracting the influenza. That a contract should be completed by a
private act is against the language of Lord Blackburn in Brogden v.
Metropolitan Ry. Co.2 App. Cas. 666. The use of the ball at home stands on the same
level as the writing a letter which is kept in the writer's drawer. In Denton
v. Great Northern Ry. Co. 5 E. & B. 860 the fact was ascertained by a public, not a
secret act. The respondent relies on Williams v. Carwardine 4 B. & Ad. 621, and the
other cases of that class; but there a service was done to the advertiser. Here
no service to the defendants was requested, for it was no benefit to them that
the balls should be used: their interest was only that they should be sold.
Those cases also differ from the present in this important particular, that in
them the service was one which could only be performed by a limited number of
persons, so there was no difficulty in ascertaining with whom the contract was
made. It is said the advertisement was not a legal contract, but a promise in
honour, which, if the defendants had been approached in a proper way, they would
have fulfilled. A request is as necessary in the case of an executed
consideration as of an executory one: Lampleigh v. Braithwait
1 Sm. L.C. 9th ed. pp. 153, 157, 159; and
here there was no request. Then as to the want of
limitation as to time, it is conceded that the defendants cannot have meant to
contract without some limit, and three limitations have been suggested. The
limitation "during the prevalence of the epidemic" is inadmissible, for the
advertisement applies to colds as well as influenza. The limitation "during use"
is excluded by the language "after having used." The third is, "within a
reasonable time," and that is probably what was intended; but it cannot be
deduced from the words; so the fair result is that there was no legal contract
at all.
LINDLEY, L.J.[The Lord Justice stated the facts, and
proceeded:-] I will begin by referring to two points which were raised in the
Court below. I refer to them simply for the purpose of dismissing them. First,
it is said no action will lie upon this contract because it is a policy. You
have only to look at the advertisement to dismiss that suggestion. Then it was
said that it is a bet. Hawkins, J., came to the conclusion that nobody ever
dreamt of a bet, and that the transaction had nothing whatever in common with a
bet. I so entirely agree with him that I pass over this contention also as not
worth serious attention. Then, what is left? The first observation I will
make is that we are not dealing with any inference of fact. We are dealing with
an express promise to pay 100l. in certain events. Read the advertisement how
you will, and twist it about as you will, here is a distinct promise expressed
in language which is perfectly unmistakable - "100l. reward will be paid by the
Carbolic Smoke Ball Company to any person who contracts the iufluenza after
having used the ball three times daily for two weeks according to the printed
directions supplied with each ball." We must first consider whether this was
intended to be a promise at all, or whether it was a mere puff which meant
nothing. Was it a mere puff? My answer to that question is No, and I base my
answer upon this passage: "1000l. is deposited with the Alliance Bank, shewing
our sincerity in the matter." Now, for what was that money deposited or that
statement made except to negative the suggestion that this was a mere puff and
meant nothing at all? The deposit is called in aid by the advertiser as proof of
his sincerity in the matter - that is, the sincerity of his promise to pay this
100l. in the event which he has specified. I say this for the purpose of giving
point to the observation that we are not inferring a promise; there is the
promise, as plain as words can make it. Then it is contended that it is not
binding. In the first place, it is said that it is not made with anybody in
particular. Now that point is common to the words of this advertisement and to
the words of all other advertisements offering rewards. They are offers to
anybody who performs the conditions named in the advertisement, and anybody who
does perform the condition accepts the offer. In point of law this advertisement
is an offer to pay 100l. to anybody who will perform these conditions, and the
performance of the conditions is the acceptance of the offer. That rests upon a
string of authorities, the earliest of which is Williams v. Carwardine
4 B. & Ad. 621, which has been followed by many other decisions upon advertisements
offering rewards. But then it is said, "Supposing that the performance of
the conditions is an acceptance of the offer, that acceptance ought to have been
notified." Unquestionably, as a general proposition, when an offer is made, it
is necessary in order to make a binding contract, not only that it should be accepted, but that the
acceptance should be notified. But is that so in cases of this kind? I apprehend
that they are an exception to that rule, or, if not an exception, they are open
to the observation that the notification of the acceptance need not precede the
performance. This offer is a continuing offer. It was never revoked, and if
notice of acceptance is required - which I doubt very much, for I rather think
the true view is that which was expressed and explained by Lord Blackburn in the
case of Brogden v. Metropolitan Ry. Co.2 App. Cas. 666 - if notice of acceptance is
required, the person who makes the offer gets the notice of acceptance
contemporaneously with his notice of the performance of the condition. If he
gets notice of the acceptance before his offer is revoked, that in principle is
all you want. I, however, think that the true view, in a case of this kind, is
that the person who makes the over shews by his language and from the nature of
the transaction that he does not expect and does not require notice of the
acceptance apart from notice of the performance. We, therefore, find here
all the elements which are necessary to form a binding contract enforceable in
point of law, subject to two observations. First of all it is said that this
advertisement is so vague that you cannot really construe it as a promise - that
the vagueness of the language shews that a legal promise was never intended or
contemplated. The language is vague and uncertain in some respects, and
particularly in this, that the 100l. is to be paid to any person who contracts
the increasing epidemic after having used the balls three times daily for two
weeks. It is said, When are they to be used? According to the language of the
advertisement no time is fixed, and, construing the offer most strongly against
the person who has made it, one might infer that any time was meant. I do not
think that was meant, and to hold the contrary would be pushing too far the
doctrine of taking language most strongly against the person using it. I do not
think that business people or reasonable people would understand the words as
meaning that if you took a smoke ball and used it three times daily for two
weeks you were to be guaranteed against influenza for the rest of your life, and
I think it would be pushing the language of the advertisement too far to
construe it as meaning that. But if it does not mean that, what does it mean? It
is for the defendants to shew what it does mean; and it strikes me that there
are two, and possibly three, reasonable constructions to be put on this
advertisement, any one of which will answer the purpose of the plaintiff.
Possibly it may be limited to persons catching the "increasing epidemic" (that
is, the then prevailing epidemic), or any colds or diseases caused by taking
cold, during the prevalence of the increasing epidemic. That is one suggestion;
but it does not commend itself to me. Another suggested meaning is that you are
warranted free from catching this epidemic, or colds or other diseases caused by
taking cold, whilst you are using this remedy after using it for two weeks. If
that is the meaning, the plaintiff is right, for she used the remedy for two
weeks and went on using it till she got the epidemic. Another meaning, and the
one which I rather prefer, is that the reward is offered to any person who
contracts the epidemic or other disease within a reasonable time after having
used the smoke ball. Then it is asked, What is a reasonable time? It has been
suggested that there is no standard of reasonableness; that it depends upon the
reasonable time for a germ to develop! I do not feel pressed by that. It strikes
me that a reasonable time may be ascertained in a business sense and in a sense
satisfactory to a lawyer, in this way; find out from a chemist what the ingredients are;
find out from a skilled physician how long the effect of such ingredients on the
system could be reasonably expected to endure so as to protect a person from an
epidemic or cold, and in that way you will get a standard to be laid before a
jury, or a judge without a jury, by which they might exercise their judgment as
to what a reasonable time would be. It strikes me, I confess, that the true
construction of this advertisement is that 100l. will be paid to anybody who
uses this smoke ball three times daily for two weeks according to the printed
directions, and who gets the influenza or cold or other diseases caused by
taking cold within a reasonable time after so using it; and if that is the true
construction, it is enough for the plaintiff. I come now to the last point
which I think requires attention - that is, the consideration. It has been
argued that this is nudum pactum - that there is no consideration. We must apply
to that argument the usual legal tests. Let us see whether there is no advantage
to the defendants. It is said that the use of the ball is no advantage to them,
and that what benefits them is the sale; and the case is put that a lot of these
balls might be stolen, and that it would be no advantage to the defendants if
the thief or other people used them. The answer to that, I think, is as follows.
It is quite obvious that in the view of the advertisers a use by the public of
their remedy, if they can only get the public to have confidence enough to use
it, will react and produce a sale which is directly beneficial to them.
Therefore, the advertisers get out of the use an advantage which is enough to
constitute a consideration. But there is another view. Does not the person
who acts upon this advertisement and accepts the offer put himself to some
inconvenience at the request of the defendants? Is it nothing to use this ball
three times daily for two weeks according to the directions at the request of
the advertiser? Is that to go for nothing? It appears to me that there is a
distinct inconvenience, not to say a detriment, to any person who so uses the
smoke ball. I am of opinion, therefore, that there is ample consideration for
the promise. We were pressed upon this point with the case of Gerhard v.
Bates 2 E. & B. 476, which was the case of a promoter of companies who had promised
the bearers of share warrants that they should have dividends for so many years,
and the promise as alleged was held not to shew any consideration. Lord
Campbell's judgment when you come to examine it is open to the explanation, that
the real point in that case was that the promise, if any, was to the original
bearer and not to the plaintiff, and that as the plaintiff was not suing in the
name of the original bearer there was no contract with him. Then Lord Campbell
goes on to enforce that view by shewing that there was no consideration shewn
for the promise to him. I cannot help thinking that Lord Campbell's observations
would have been very different if the plaintiff in that action had been an
original bearer, or if the declaration had gone on to shew what a
sociètè anonyme was, and had alleged the promise to have been, not
only to the first bearer, but to anybody who should become the bearer. There was
no such allegation, and the Court said, in the absence of such allegation, they
did not know (judicially, of course) what a sociètè anonyme was,
and, therefore, there was no consideration. But in the present case, for the
reasons I have given, I cannot see the slightest difficulty in coming to the conclusion that there is
consideration. It appears to me, therefore, that the defendants must perform
their promise, and, if they have been so unwary as to expose themselves to a
great many actions, so much the worse for them.
BOWEN, L.J.I am of the
same opinion. We were asked to say that this document was a contract too vague
to be enforced. The first observation which arises is that the document
itself is not a contract at all, it is only an offer made to the public. The
defendants contend next, that it is an offer the terms of which are too vague to
be treated as a definite offer, inasmuch as there is no limit of time fixed for
the catching of the influenza, and it cannot be supposed that the advertisers
seriously meant to promise to pay money to every person who catches the
influenza at any time after the inhaling of the smoke ball. It was urged also,
that if you look at this document you will find much vagueness as to the persons
with whom the contract was intended to be made - that, in the first place, its
terms are wide enough to include persons who may have used the smoke ball before
the advertisement was issued; at all events, that it is an offer to the world in
general, and, also, that it is unreasonable to suppose it to be a definite
offer, because nobody in their senses would contract themselves out of the
opportunity of checking the experiment which was going to be made at their own
expense. It is also contended that the advertisement is rather in the nature of
a puff or a proclamation than a promise or offer intended to mature into a
contract when accepted. But the main point seems to be that the vagueness of the
document shews that no contract whatever was intended. It seems to me that in
order to arrive at a right conclusion we must read this advertisement in its
plain meaning, as the public would understand it. It was intended to be issued
to the public and to be read by the public. How would an ordinary person reading
this document construe it? It was intended unquestionably to have some effect,
and I think the effect which it was intended to have, was to make people use the
smoke ball, because the suggestions and allegations which it contains are
directed immediately to the use of the smoke ball as distinct from the purchase
of it. It did not follow that the smoke ball was to be purchased from the
defendants directly, or even from agents of theirs directly. The intention was
that the circulation of the smoke ball should be promoted, and that the use of
it should be increased. The advertisement begins by saying that a reward will be
paid by the Carbolic Smoke Ball Company to any person who contracts the
increasing epidemic after using the ball. It has been said that the words do not
apply only to persons who contract the epidemic after the publication of the
advertisement, but include persons who had previously contracted the influenza.
I cannot so read the advertisement. It is written in colloquial and popular
language, and I think that it is equivalent to this: "100l. will be paid to any
person who shall contract the increasing epidemic after having used the carbolic
smoke ball three times daily for two weeks." And it seems to me that the way in
which the public would read it would be this, that if anybody, after the
advertisement was published, used three times daily for two weeks the carbolic
smoke ball, and then caught cold, he would be entitled to the reward. Then again
it was said: "How long is this protection to endure? Is it to go on for ever, or
for what limit of time?" I think that there are two constructions of this
document, each of which is good sense, and each of which seems to me to
satisfy the exigencies of the present action. It may mean that the
protection is warranted to last during the epidemic, and it was during the
epidemic that the plaintiff contracted the disease. I think, more probably, it
means that the smoke ball will be a protection while it is in use. That seems to
me the way in which an ordinary person would understand an advertisement about
medicine, and about a specific against influenza. It could not be supposed that
after you have left off using it you are still to be protected for ever, as if
there was to be a stamp set upon your forehead that you were never to catch
influenza because you had once used the carbolic smoke ball. I think the
immunity is to last during the use of the ball. That is the way in which I
should naturally read it, and it seems to me that the subsequent language of the
advertisement supports that construction. It says: "During the last epidemic of
influenza many thousand carbolic smoke balls were sold, and in no ascertained
case was the disease contracted by those using" (not "who had used") "the
carbolic smoke ball," and it concludes with saying that one smoke ball will last
a family several months (which imports that it is to be efficacious while it is
being used), and that the ball can be refilled at a cost of 5s. I, therefore,
have myself no hesitation in saying that I think, on the construction of this
advertisement, the protection was to enure during the time that the carbolic
smoke ball was being used. My brother, the Lord Justice who preceded me, thinks
that the contract would be sufficiently definite if you were to read it in the
sense that the protection was to be warranted during a reasonable period after
use. I have some difficulty myself on that point; but it is not necessary for me
to consider it further, because the disease here was contracted during the use
of the carbolic smoke ball. Was it intended that the 100l. should, if the
conditions were fulfilled, be paid? The advertisement says that 1000l. is lodged
at the bank for the purpose. Therefore, it cannot be said that the statement
that 100l. would be paid was intended to be a mere puff. I think it was intended
to be understood by the public as an offer which was to be acted upon. But
it was said there was no check on the part of the persons who issued the
advertisement, and that it would be an insensate thing to promise 100l. to a
person who used the smoke ball unless you could check or superintend his manner
of using it. The answer to that argument seems to me to be that if a person
chooses to make extravagant promises of this kind he probably does so because it
pays him to make them, and, if he has made them, the extravagance of the
promises is no reason in law why he should not be bound by them. It was also
said that the contract is made with all the world - that is, with everybody; and
that you cannot contract with everybody. It is not a contract made with all the
world. There is the fallacy of the argument. It is an offer made to all the
world; and why should not an offer be made to all the world which is to ripen
into a contract with anybody who comes forward and performs the condition? It is
an offer to become liable to any one who, before it is retracted, performs the
condition, and, although the offer is made to the world, the contract is made
with that limited portion of the public who come forward and perform the
condition on the faith of the advertisement. It is not like cases in which you
offer to negotiate, or you issue advertisements that you have got a stock of
books to sell, or houses to let, in which case there is no offer to be bound by
any contract. Such advertisements are offers to negotiate - offers to receive
offers - offers to chaffer, as, I think, some learned judge in one of the cases
has said. If this is an offer to be bound, then it is a contract the moment the
person fulfils the condition. That seems to me to be sense, and it is
also the ground on which all these advertisement cases have been decided during
the century; and it cannot be put better than in Willes, J.'s, judgment in
Spencer v. Harding.Law Rep. 5 C. P. 561 "In the advertisement cases," he says, "there
never was any doubt that the advertisement amounted to a promise to pay the
money to the person who first gave information. The difficulty suggested was
that it was a contract with all the world. But that, of course, was soon
overruled. It was an offer to become liable to any person who before the offer
should be retracted should happen to be the person to fulfil the contract, of
which the advertisement was an offer or tender. That is not the sort of
difficulty which presents itself here. If the circular had gone on, 'and we
undertake to sell to the highest bidder,' the reward cases would have applied,
and there would have been a good contract in respect of the persons." As soon as
the highest bidder presented himself, says Willes, J., the person who was to
hold the vinculum juris on the other side of the contract was ascertained, and
it became settled. Then it was said that there was no notification of the
acceptance of the contract. One cannot doubt that, as an ordinary rule of law,
an acceptance of an offer made ought to be notified to the person who makes the
offer, in order that the two minds may come together. Unless this is done the
two minds may be apart, and there is not that consensus which is necessary
according to the English law - I say nothing about the laws of other countries -
to make a contract. But there is this clear gloss to be made upon that doctrine,
that as notification of acceptance is required for the benefit of the person who
makes the offer, the person who makes the offer may dispense with notice to
himself if he thinks it desirable to do so, and I suppose there can be no doubt
that where a person in an offer made by him to another person, expressly or
impliedly intimates a particular mode of acceptance as sufficient to make the
bargain binding, it is only necessary for the other person to whom such offer is
made to follow the indicated method of acceptance; and if the person making the
offer, expressly or impliedly intimates in his offer that it will be sufficient
to act on the proposal without communicating acceptance of it to himself,
performance of the condition is a sufficient acceptance without notification.
That seems to me to be the principle which lies at the bottom of the
acceptance cases, of which two instances are the well-known judgment of Mellish,
L.J., in Harris's CaseLaw Rep. 8 Q. B. 286, and the very instructive judgment of Lord
Blackburn in Brogden v. Metropolitan Ry. Co.2 App. Cas. 666, in which he appears to
me to take exactly the line I have indicated. Now, if that is the law, how
are we to find out whether the person who makes the offer does intimate that
notification of acceptance will not be necessary in order to constitute a
binding bargain? In many cases you look to the offer itself. In many cases you
extract from the character of the transaction that notification is not required,
and in the advertisement cases it seems to me to follow as an inference to be
drawn from the transaction itself that a person is not to notify his acceptance
of the offer before he performs the condition, but that if he performs the
condition notification is dispensed with. It seems to me that from the point of
view of common sense no other idea could be entertained. If I advertise to the
world that my dog is lost, and that anybody who brings the dog to a particular
place will be paid
some money, are all the police or other persons whose business it is to find
lost dogs to be expected to sit down and write me a note saying that they have
accepted my proposal? Why, of course, they at once look after the dog, and as
soon as they find the dog they have performed the condition. The essence of the
transaction is that the dog should be found, and it is not necessary under such
circumstances, as it seems to me, that in order to make the contract binding
there should be any notification of acceptance. It follows from the nature of
the thing that the performance of the condition is sufficient acceptance without
the notification of it, and a person who makes an offer in an advertisement of
that kind makes an offer which must be read by the light of that common sense
reflection. He does, therefore, in his offer impliedly indicate that he does not
require notification of the acceptance of the offer. A further argument for
the defendants was that this was a nudum pactum - that there was no
consideration for the promise - that taking the influenza was only a condition,
and that the using the smoke ball was only a condition, and that there was no
consideration at all; in fact, that there was no request, express or implied, to
use the smoke ball. Now, I will not enter into an elaborate discussion upon the
law as to requests in this kind of contracts. I will simply refer to Victors
v. Davies 12 M. & W. 758 and Serjeant Manning's note to Fisher v.
Pyne 1 M. & G. 265,
which everybody ought to read who wishes to embark in this controversy. The
short answer, to abstain from academical discussion, is, it seems to me, that
there is here a request to use involved in the offer. Then as to the alleged
want of consideration. The definition of "consideration" given in Selwyn's Nisi
Prius, 8th ed. p. 47, which is cited and adopted by Tindal, C.J., in the case of
Laythoarp v. Bryant 3 Scott, 238, 250, is this: "Any act of the plaintiff from which
the defendant derives a benefit or advantage, or any labour, detriment, or
inconvenience sustained by the plaintiff, provided such act is performed or such
inconvenience suffered by the plaintiff, with the consent, either express or
implied, of the defendant." Can it be said here that if the person who reads
this advertisement applies thrice daily, for such time as may seem to him
tolerable, the carbolic smoke ball to his nostrils for a whole fortnight, he is
doing nothing at all - that it is a mere act which is not to count towards
consideration to support a promise (for the law does not require us to measure
the adequacy of the consideration). Inconvenience sustained by one party at the
request of the other is enough to create a consideration. I think, therefore,
that it is consideration enough that the plaintiff took the trouble of using the
smoke ball. But I think also that the defendants received a benefit from this
user, for the use of the smoke ball was contemplated by the defendants as being
indirectly a benefit to them, because the use of the smoke balls would promote
their sale. Then we were pressed with Gerhard v. Bates 2 E. & B. 476. In
Gerhard v. Bates, which arose upon demurrer, the point upon which the
action failed was that the plaintiff did not allege that the promise was made to
the class of which alone the plaintiff was a member, and that therefore there
was no privity between the plaintiffs and the defendant. Then Lord Campbell went
on to give a second reason. If his first reason was not enough, and the
plaintiff and the defendant there had come together as contracting parties and
the only question was consideration, it seems to me Lord Campbell's
reasoning would not have been sound. It is only to be supported by
reading it as an additional reason for thinking that they had not come into the
relation of contracting parties; but, if so, the language was superfluous. The
truth is, that if in that case you had found a contract between the parties
there would have been no difficulty about consideration; but you could not find
such a contract. Here, in the same way, if you once make up your mind that there
was a promise made to this lady who is the plaintiff, as one of the public - a
promise made to her that if she used the smoke ball three times daily for a
fortnight and got the influenza, she should have 100l., it seems to me that her
using the smoke ball was sufficient consideration. I cannot picture to myself
the view of the law on which the contrary could be held when you have once found
who are the contracting parties. If I say to a person, "If you use such and such
a medicine for a week I will give you 5l.," and he uses it, there is ample
consideration for the promise.
A. L. SMITH, L.J.The first point in this
case is, whether the defendants' advertisement which appeared in the Pall
Mall Gazette was an offer which, when accepted and its conditions performed,
constituted a promise to pay, assuming there was good consideration to uphold
that promise, or whether it was only a puff from which no promise could be
implied, or, as put by Mr. Finlay, a mere statement by the defendants of the
confidence they entertained in the efficacy of their remedy. Or as I might put
it in the words of Lord Campbell in Denton v. Great Northern Ry. Co.
5 E. & B. 860, whether this advertisement was mere waste paper. That is the first matter
to be determined. It seems to me that this advertisement reads as follows:
"100l. reward will be paid by the Carbolic Smoke Ball Company to any person who
after having used the ball three times daily for two weeks according to the
printed directions supplied with such ball contracts the increasing epidemic
influenza, colds, or any diseases caused by taking cold. The ball will last a
family several months, and can be refilled at a cost of 5s." If I may paraphrase
it, it means this: "If you" - that is one of the public as yet not ascertained,
but who, as Lindley and Bowen, L.JJ., have pointed out, will be ascertained by
the performing the condition - "will hereafter use my smoke ball three times
daily for two weeks according to my printed directions, I will pay you 100l. if
you contract the influenza within the period mentioned in the advertisement."
Now, is there not a request there? It comes to this: "In consideration of your
buying my smoke ball, and then using it as I prescribe, I promise that if you
catch the influenza within a certain time I will pay you 100l." It must not be
forgotten that this advertisement states that as security for what is being
offered, and as proof of the sincerity of the offer, 1000l. is actually lodged
at the bank wherewith to satisfy any possible demands which might be made in the
event of the conditions contained therein being fulfilled and a person catching
the epidemic so as to entitle him to the 100l. How can it be said that such a
statement as that embodied only a mere expression of confidence in the wares
which the defendants had to sell? I cannot read the advertisement in any such
way. In my judgment, the advertisement was an offer intended to be acted upon,
and when accepted and the conditions performed constituted a binding promise on
which an action would lie, assuming there was consideration for that promise.
The defendants have contended that it was a promise in honour or an agreement or
a contract in honour - whatever that may mean. I understand that if
there is no consideration
for a promise, it may be a promise in honour, or, as we should call it, a
promise without consideration and nudum pactum; but if anything else is meant, I
do not understand it. I do not understand what a bargain or a promise or an
agreement in honour is unless it is one on which an action cannot be brought
because it is nudum pactum, and about nudum pactum I will say a word in a
moment. In my judgment, therefore, this first point fails, and this was an
offer intended to be acted upon, and, when acted upon and the conditions
performed, constituted a promise to pay. In the next place, it was said that
the promise was too wide, because there is no limit of time within which the
person has to catch the epidemic. There are three possible limits of time to
this contract. The first is, catching the epidemic during its continuance; the
second is, catching the influenza during the time you are using the ball; the
third is, catching the influenza within a reasonable time after the expiration
of the two weeks during which you have used the ball three times daily. It is
not necessary to say which is the correct construction of this contract, for no
question arises thereon. Whichever is the true construction, there is sufficient
limit of time so as not to make the contract too vague on that account. Then
it was argued, that if the advertisement constituted an offer which might
culminate in a contract if it was accepted, and its conditions performed, yet it
was not accepted by the plaintiff in the manner contemplated, and that the offer
contemplated was such that notice of the acceptance had to be given by the party
using the carbolic ball to the defendants before user, so that the defendants
might be at liberty to superintend the experiment. All I can say is, that there
is no such clause in the advertisement, and that, in my judgment, no such clause
can be read into it; and I entirely agree with what has fallen from my Brothers,
that this is one of those cases in which a performance of the condition by using
these smoke balls for two weeks three times a day is an acceptance of the offer.
It was then said there was no person named in the advertisement with whom
any contract was made. That, I suppose, has taken place in every case in which
actions on advertisements have been maintained, from the time of Williams v.
Carwardine 4 B. & Ad. 621, and before that, down to the present day. I have nothing to
add to what has been said on that subject, except that a person becomes a
persona designata and able to sue, when he performs the conditions mentioned in
the advertisement. Lastly, it was said that there was no consideration, and
that it was nudum pactum. There are two considerations here. One is the
consideration of the inconvenience of having to use this carbolic smoke ball for
two weeks three times a day; and the other more important consideration is the
money gain likely to accrue to the defendants by the enhanced sale of the smoke
balls, by reason of the plaintiff's user of them. There is ample consideration
to support this promise. I have only to add that as regards the policy and the
wagering points, in my judgment, there is nothing in either of them.