Unilateral Contracts: Daulia Ltd. v Four Millbank Nominees Ltd - Essay Example

The precise import of that statement can be deduced in the seven cases discussed in the preceding paragraphs. A classic case of unilateral contracts is the case of Carlill v Carbolic Smoke Ball Co. [1893] 1QB 256, where a ‘smoke ball’ manufacturer boastfully advertised that their product is so effective against influenza, which was an epidemic at that time, that they were willing to pay anyone £100 who buys it, uses it as directed and still catch the disease. Mrs. Carlill, who bought and took the medicine but still caught influenza took up the offer seriously and made a claim for the £100, which the company refused to pay on the ground that the advertisement was not a serious offer meant to be accepted but merely an advertisement strategy.

The Court disagreed and pointed out that the inclusion of the words “£1,000 is deposited with the Alliance Bank, showing our sincerity in the matter” in the advertisement showed that the manufacturer intended their advertisement to be taken seriously and that therefore it constituted a unilateral offer which Mrs. Carlill has accepted by performing the condition of the offer. A contract therefore was necessarily created upon the performance of Mrs. Carlill of the offer’s condition.

A contract was also consolidated through the performance of the condition in an offer through advertisement in the Williams v Carwardine [1833] 110 ER 590case, where a relative of a murdered man advertised through handbills a reward to the person who can give any information leading to the murder. A Mrs. Williams, who earlier testified in a court action which failed to convict the accused, gave testimony against the same men, which included her husband that led to their conviction.