Gamaxo Ltd. offered a reward of ₹10,000 by advertisement to anyone who infected influenza after using their smoke ball in the specified manner. Mrs. Upma uses smoke ball in the specified manner, but still infected by inf

CS Executive · Economic and Commercial Laws · PYQS · June 2018
Gamaxo Ltd. offered a reward of ₹10,000 by advertisement to anyone who infected influenza after using their smoke ball in the specified manner. Mrs. Upma uses smoke ball in the specified manner, but still infected by influenza. She claims the reward. Decide the case with the help of leading decided case laws and related sections of the Indian Contract Act, 1872.

Answer & Explanation:

An offer must be clear, definite, complete and final. It must not be vague. An offer must be communicated to the offeree. An offer becomes effective only when it has been communicated to the offeree so as to give him an opportunity to accept or reject the same. The communication of an offer may be made by express words-oral or written-or it may be implied by conduct. But when an offer is addressed to an uncertain body of individuals i.e. the world at large, it is a 'general offer' and can be accepted by any member of the general public by fulfilling the condition laid down in the offer. The leading case on the subject is Carlill v. Carbolic Smoke Ball Co. The company offered by advertisement, a reward of $100 to anyone who contacted influenza after using their smoke ball in the specified manner. Mrs. Carlill did use smoke ball in the specified manner, but was attacked by influenza. She claimed the reward and it was held that she could recover the reward as 'general offer' can be accepted by anybody. Mrs Upma is entitled for reward from Gamaxo Company.

Topics: Contract Law

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