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Ads And Unilateral Offers Notes

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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 [1893]
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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