Court case[1893] 1 QB 256

The company advertised that it would pay 100 pounds to anyone who caught influenza after using its smoke ball as directed, and said it had deposited 1,000 pounds with a bank to show its sincerity. Mrs Carlill used the ball as directed and still caught influenza. The company refused to pay, saying the advertisement was mere puff and no contract existed.

The Court of Appeal held that the advertisement was an offer to the whole world which became a binding contract with anyone who performed the conditions. The bank deposit showed a serious intention. In such offers the offeror impliedly dispenses with notice of acceptance; performance of the condition is the acceptance. The inconvenience of using the ball was sufficient consideration.