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Contract law

The offer

An offer is the first part of the agreement.

What is an offer?

An offer is a definite promise to be bound on specific terms made by
the offeror to the offeree.

The offer can be made in any form but must be communicated to the
offeree. The offeree can be a particular person, a class of persons or
even the whole world.

Illustration 1 – The offer

CARLILL v CARBOLIC SMOKE BALL 1893

Facts:

The manufacturers of a medicinal ‘smoke ball’ advertised in a newspaper that
anyone who bought and used the ball as directed and still contracted influenza
would be paid a £100 reward. Mrs. Carlill used the ball in accordance with the
instructions and still caught flu. The manufacturers said there was no contract
with Mrs. Carlill because an offer could not be made to the whole world.

Held:

An offer could be made to the whole world, the wording of the advert showed a
definite intention to be bound and as such it amounted to an offer. Mrs. Carlill
had accepted the offer by using the ball correctly and as such was entitled to
payment of the £100.

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