Monday, 26 May 2014

Communicating acceptance of Contract - English Contract Law

Felthouse v Bindley
Citation: (1862) EWHC CP J 35
This case lays down the rule that acceptance of an offer has to be communicated to the person making the offer himself. Communication of acceptance to anyone else will not amount to a valid acceptance.
The uncle (Plaintiff) was negotiating the price of a horse with his nephew. There was some misunderstanding regarding the price following which the uncle wrote to the nephew, “If I hear no more about him, I consider the horse mine at £30-15.”
The nephew did not reply since he was busy but told his auctioneer (Defendant) not to sell the horse since it was already sold. The auctioneer sold it by mistake.
Plaintiff brought an action for conversion against the Defendant. The question before the court was if a valid contract had been entered into.

It was held that no valid contract had been formed since the acceptance of the offer was not communicated to the person making it. 

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