PROPOSAL

• The issue is whether the advertisement made by Marsha was an offer or invitation to treat. Pursuant to section 2 (a) of the Contracts Act 1950, a person is said to made an offer or proposal when the person indicates his willingness to do an act or abstain himself from doing anything, with a view of obtaining the consent of the other to the act or abstinence.
• Making an offer

  1. Orally

  2. In writing

  3. By conduct
• Offer made to

  • A particular person
  • General public
  • Whole world
• Secondly, offer also can be made to general public or to the whole world where anyone who meets all the terms of the proposal may accept the offer. In the case of Carlil V Carbolic Smoke Ball.
• Carlil V Carbolic Smoke Ball

  The defendant made an advertisement to pay 1000 pounds to anyone who still suffering influenza after using their product smoke ball (medicine used to cure influenza). To show their true intentions, the defendant deposited 1000 pounds into a bank account for this purpose. Mrs. Carlil bought and used the smoke ball but still suffering influenza.
• The court held that Mrs. Carlil claimed was successful because the advertisement made by defendants was supported by consideration. An offer can be made to the whole world. Therefore, anyone who came forward and performed the condition was considered to have accepted the offer.
• When offer is made to a particular person only the offeree can accept the offer. In the case of Boulton V Jones, the defendant offered to buy goods from Brocklehurst, but Brocklehurst had sold his company to the plaintiff. The plaintiff then accepted the offer without informing that the business had changed hands. When the defendant knew that the goods was not from Brocklehurst, he refused to pay for the goods. The plaintiff sued the defendant for the price.
• The Court dismissed the plaintiff's claim and held that the defendant was not liable to pay for the goods as the offer was not addressed to the plaintiff.