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Case: Carlill v Carbolic Smoke Ball CompanyDated: 8th Dec 1892 Court of Appeal (Civil Division)Summary:A medical firm advertised that about their new drug which they claimed to cure influenza (pandemic that took nearly 1mln lives). And stated that if a person still contracts the virus after the using the smoke ball as per the instructions given so the company would pay them a 100 pounds.Defendants: Carbolic Smoke Ball Company, a rubber ball with a tube at its opening and filledwith Carbolic acid which is supposed to flush all viruses when inserted in one of your nostrils and the bottom part of the rubber ball is pressed. They advertised that if a person uses three times daily for two weeks so they will not catch the virus and if anyone does catch the virus the company will pay them a 100 pounds and for that they are depositing a 1000 pounds in Allied Bank to show their sincerity.Plaintif: Louisa Carlill believed in the statement and used this ball as per instructions and at a later date had an attack of influenza. Her husband wrote to the company about what had happened and the company refused so this matter was bought to court, under three judges anda special jury.Judgment:Arguments were heard from both the parties, the company’s arguments were rejected and the court ruled in favor of Louisa Carlill. The reasons given in the judgment were that the ofer in the advertisement was for the general public, conditions were set for the use of the smoke ball, sale of the smoke ball would benefit the company in terms of sales so it was not just for public welfare and the claim of 1000 pounds deposited in Allied Bank showed serious intention of legal binding. The three judges gave their own verdicts 1. Lindley L.J. He dismissed the appealed with reasons that the ad presented itself as a policy and no action would lie upon it and a distinct promise was made of paying a 100 pounds if used with given instructions and the 1000 pound deposit enforces their sincerity in the matterplus the more the ball is used the more the company will benefit in terms of sales 2. Bowen L.J. He also agree with Lindley and stated further that there is no time limit set in the ad for catching the virus making the contract too vague which the defendant pointed but Bowen said that this contract was set for the general public to vies and it should always be kept in consideration as to how they would interpret it . And the point of time periodcame to the conclusion that it was for this epidemic and as long as the there is this epidemic the company will be liable to make the payments and the contract would hold 3. A.L. Smith L.J.He agreed with both the judges’ decisions and his judgment was the same ConclusionMS .Carlill received her compensation of 100 pounds as the appeal was dismissed unanimously by all three judges. This case it sets out the basic principles of contract and their relation to everyday life .The elements of Ofer & Acceptance, Consideration, Intention to create Legal Relations, etc. were mentioned in this case and forms the foundation for Contract Law.