This is an extract of our Ads And Unilateral Offers document, which we sell as part of our Contract Law Notes collection written by the top tier of University Of Ottawa students.
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THEME 7: ADS AND UNILATERAL OFFERS o STARTING POSITION: Generally, ads are considered an invitation to treat, but they may be offers depending on the language that is used o OBJECTIVE REASONABLE PERSON TEST: The test to determine whether the language denotes an offer or an invitation to treat depends on how a reasonable person would read the ad o Once you find that something is an invitation to treat, your analysis ends because there is no contractual intent o UNILATERAL CONTRACT: conditions are set by the offeror and they bind the offeree o Can be made to world at large and are non-negotiable; acceptance by way of fulfilling conditions (no need for communication directly to offeror) o Bilateral offer made between two individuals o In a unilateral offer, a sale is made once a deal is closed (ex. In an auction, the sale is complete when hammer hits; bidder may retract bid)
CASE Carlill v Carbolic Smoke Ball 
QB SMOKE BALL INFLUENZA I: Was the ad an offer? YES. D: in favour of PL
*Ad is generally a unilateral offer
- DF advertised An ad in a smoke ball as newspaper may be medicine to an offer depending prevent influenza on the language of if taken three times the ad and how the a day according to reasonable person directions would interpret the
- if these ad. When someone conditions carried performs a out and someone condition in an catches disease, offer, they do it on faith of the ad and DF will pay 100 don't need to pounds communicate it
-PL took it, directly to offeror if followed the proposal doesn't directions, and expressly indicate or caught influenza imply
-sued for 100 communication of pounds acceptance. Meeting of the minds applied: offeree must be notified of offer so their minds can come together.
- ad can become a contract when someone performs on faith of ad
- terms are wide; not a definite offer
- performance constitutes acceptance
- cannot be assumed that smoke ball makes you immune indefinitely
- if offeror explicitly or impliedly indicates offer sufficient to act on proposal without communication, no notification required
- act is consideration because DF is benefitting
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