Question 1
The offer made in this case was Carbolic Smoke Ball Company’s advertisement that it would pay £100 to customers who purchased their device, used it according to the instructions and then contracted influenza. The court decided that Carbolic Smoke Ball Company’s deposit of £1000 in a bank account at the time of the advertisement proved it had intended to make a binding offer.
Question 2
Mrs Carlill accepted the offer in this case. The performance of the conditions stated in the offer(when she purchased a smoke ball, used it according to the instructions and then contracted influenza) was the evidence that she had accepted the offer.
Question 3
Carlill purchased a smoke ball, and suffered the inconvenience of using it without gaining the advertised benefit. This was considered to be sufficient consideration to underpin the contract.
Question 4
An essential term of the contract was that Carbolic Smoke Ball Company would pay £100 to any customer who purchased their device, used it according to the instructions and then contracted influenza. This term was breached when the company refused to pay Mrs Carlill £100.