Global Landmark Cases

1893

Carlill v. Carbolic Smoke Ball Co.

Offers to the world

The company advertised that it would pay £100 to anyone who caught influenza after using its smoke ball as directed, and deposited £1,000 with a bank to show its sincerity. Mrs Carlill used the ball, caught flu and sued. The Court of Appeal held that the advertisement was a unilateral offer to the world, accepted by performing the conditions, without any need to communicate acceptance.

• Court of Appeal (England).
• An offer can be made to the world at large.

1919

Balfour v. Balfour

Domestic agreements

A husband working in Ceylon promised his wife £30 a month while she stayed in England. When the marriage broke down she sued. The Court of Appeal held that agreements between spouses in domestic life are generally not intended to create legal relations and are not enforceable contracts.

1854

Hadley v. Baxendale

Remoteness of damages

A carrier delayed delivering a broken mill crankshaft, and the mill stood idle. The court held that damages for breach of contract are limited to losses arising naturally from the breach, or those in the contemplation of both parties when they made the contract. The rule is reflected in Section 73 of the Indian Contract Act.

• Reflected in Section 73 of the Contract Act.

1863

Taylor v. Caldwell

The music hall fire

A music hall hired for concerts burned down before the dates. The court held the contract discharged, because its performance depended on the continued existence of the hall. It is the foundation of the doctrine of frustration in English law.

1903

Krell v. Henry

The Coronation cases

Henry hired a flat in Pall Mall to watch the coronation procession of Edward VII, which was cancelled when the King fell ill. The Court of Appeal held the contract frustrated, because the viewing of the procession was the foundation of the contract.