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Entores Limited v. Miles Far East Corporation (1955) Court of Appeal
A contract for the sale of 100 tons of copper cathodes was executed via telex between the plaintiff in England and the defendants in the Netherlands. The defendants contested the approval to issue a writ beyond the jurisdiction.
Per Denning LJ
The offer was sent by telex from England...and accepted by telex from Holland. The question for our determination is where was the contract made?
A telex contract is established upon receipt of acceptance, in this instance, in England. Acceptance must generally be conveyed to the offeror, with the postal rule serving as an exception to this principle. The basic rule pertains to instantaneous communications, including face-to-face conversation, telephone calls, and telex. The sender of an acceptance typically knows whether the offeror has received it in such instances. According to Denning LJ (obiter), if a situation occurs where an acceptance is not received and the offeror is culpable for failing to notify the offeree of the issue, the offeror would be estopped from disputing receipt and would be obligated to adhere to the contract.
A contract for the sale of 100 tons of copper cathodes was executed via telex between the plaintiff in England and the defendants in the Netherlands. The defendants contested the approval to issue a writ beyond the jurisdiction.
Per Denning LJ
The offer was sent by telex from England...and accepted by telex from Holland. The question for our determination is where was the contract made?
A telex contract is established upon receipt of acceptance, in this instance, in England. Acceptance must generally be conveyed to the offeror, with the postal rule serving as an exception to this principle. The basic rule pertains to instantaneous communications, including face-to-face conversation, telephone calls, and telex. The sender of an acceptance typically knows whether the offeror has received it in such instances. According to Denning LJ (obiter), if a situation occurs where an acceptance is not received and the offeror is culpable for failing to notify the offeree of the issue, the offeror would be estopped from disputing receipt and would be obligated to adhere to the contract.
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