CONTRACT LAW – IRAC CASE BRIEFS
(UNIT 1)
⭐ 1. Carlill v Carbolic Smoke Ball Co (1893)
Issue
Was the advertisement a legally binding offer or merely an invitation to treat?
Rule
An advertisement can be a unilateral offer if it shows clear intention to be bound.
Acceptance occurs through performance, not communication.
Application
• The company advertised that anyone who used the smoke ball as directed and
still caught influenza would receive £100.
• They deposited £1,000 in a bank to show sincerity — strong evidence of
intention.
• Mrs Carlill used the product exactly as instructed and still became ill.
• Her performance of the conditions constituted acceptance.
• The company argued the ad was not an offer, but the court held it was a
unilateral offer to the world.
Conclusion
A binding contract existed.
This case establishes unilateral contracts and acceptance by conduct.
⭐ 2. Pharmaceutical Society v Boots (1953)
Issue
Does displaying goods on shelves constitute an offer or an invitation to treat?
Rule
A display of goods is an invitation to treat, not an offer.
The offer is made by the customer at the cashier.
Application
• Boots displayed medicines on shelves in a self-service store.
, • The Pharmaceutical Society argued this was an unlawful sale without a
pharmacist present.
• The court held that the sale occurs at the cashier, where the pharmacist
supervises.
• The display merely invites customers to make an offer.
Conclusion
Display = invitation to treat.
Contract forms at the cashier.
⭐ 3. Fisher v Bell (1961)
Issue
Does displaying an item in a shop window amount to an offer?
Rule
A display in a shop window is an invitation to treat, not an offer.
Application
• A shopkeeper displayed a flick knife in his window.
• Prosecutors argued this was an “offer for sale” of a prohibited weapon.
• The court held that window displays are invitations to treat, not offers.
• Therefore, no offence was committed.
Conclusion
No offer existed.
This case reinforces the distinction between offers and invitations to treat.
⭐ 4. Hyde v Wrench (1840)
Issue
Does a counter-offer terminate the original offer?
Rule
A counter-offer destroys the original offer.
The offeree cannot later accept the original terms.
Application
• Wrench offered to sell land for £1,000.
(UNIT 1)
⭐ 1. Carlill v Carbolic Smoke Ball Co (1893)
Issue
Was the advertisement a legally binding offer or merely an invitation to treat?
Rule
An advertisement can be a unilateral offer if it shows clear intention to be bound.
Acceptance occurs through performance, not communication.
Application
• The company advertised that anyone who used the smoke ball as directed and
still caught influenza would receive £100.
• They deposited £1,000 in a bank to show sincerity — strong evidence of
intention.
• Mrs Carlill used the product exactly as instructed and still became ill.
• Her performance of the conditions constituted acceptance.
• The company argued the ad was not an offer, but the court held it was a
unilateral offer to the world.
Conclusion
A binding contract existed.
This case establishes unilateral contracts and acceptance by conduct.
⭐ 2. Pharmaceutical Society v Boots (1953)
Issue
Does displaying goods on shelves constitute an offer or an invitation to treat?
Rule
A display of goods is an invitation to treat, not an offer.
The offer is made by the customer at the cashier.
Application
• Boots displayed medicines on shelves in a self-service store.
, • The Pharmaceutical Society argued this was an unlawful sale without a
pharmacist present.
• The court held that the sale occurs at the cashier, where the pharmacist
supervises.
• The display merely invites customers to make an offer.
Conclusion
Display = invitation to treat.
Contract forms at the cashier.
⭐ 3. Fisher v Bell (1961)
Issue
Does displaying an item in a shop window amount to an offer?
Rule
A display in a shop window is an invitation to treat, not an offer.
Application
• A shopkeeper displayed a flick knife in his window.
• Prosecutors argued this was an “offer for sale” of a prohibited weapon.
• The court held that window displays are invitations to treat, not offers.
• Therefore, no offence was committed.
Conclusion
No offer existed.
This case reinforces the distinction between offers and invitations to treat.
⭐ 4. Hyde v Wrench (1840)
Issue
Does a counter-offer terminate the original offer?
Rule
A counter-offer destroys the original offer.
The offeree cannot later accept the original terms.
Application
• Wrench offered to sell land for £1,000.
