• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Entores ltd V. Miles Far East Corperation [1955] 2 QB 327(CA)

Extracts from this document...

Introduction

Case note ENTORES LTD V. MILES FAR EAST CORPORATION [1955] 2 QB 327(CA) Parties to the Case Miles Far East Corporation are an American corporation with agents all over the world, including a Dutch Company in Amsterdam. (Appellants) Entores Ltd are a company registered and resident in England, with an office in London. (Respondents) Procedural History There was a breach of contract by the appellant. In the county court the respondents ordered to serve notice of the writ in an action for damages for breach of contract on the ground that the contract was made in England and therefore fell within the terms of R.S.C.,ord. 11,r 1 (e),(i). Miles Far East Corporation appealed to the Court of Appeal. It was an interlocutory appeal for the discharge of the order dated Dec. 17 1954 which gave liberty to the plaintiffs to serve the notice of a writ. chaMaterial Facts The English Company received a telex offer from the Dutch company. Telex, like a telephone is the form of the instantaneous communication. Each Company had a teleprinter machine in its office; and each has a teletex number like a telephone number. For the moment one party type out the message, the other party ought to be receiving it on to the paper. ...read more.

Middle

Wrench (1840) 3 Beav. 334.] or revoked, [Watson v. Davies, ante.] and knowledge of the revocation has been communicated to the offeree. [Henthorn v. Fraser [1892] 2 Ch. 27.] Where an offer is capable of being accepted by post, the time of acceptance is generally the time at which the acceptance is posted. [Adams v. Lindsell (1818) 1 B. & Ald. 681.] This is so even though the posted acceptance never arrives at its destination. [Household Fire and Carriage Insurance Co. v. Grant (1879) 4 Ex. D. 216.] This rule does not apply to the revocation of an offer, which must be actually communicated to the offeree. [Henthorn v. Fraser [1892] 2 Ch. 27.] Furthermore, the rule may be negatived by express words. So where an option was required to be exercised "by notice" it was held that a notice meant something which came to the attention of the person to whom it was addressed, so that the "posting rule" did not apply. [Holwell Securities v. Hughes [1974] 1 W.L.R. 155.] The "posting rule" does not apply to instantaneous communications between the parties, e.g. telex, [Entores v. Miles Far East Corporation [1955] 2 Q.B. 327.] or, presumably, facsimile transmission. ...read more.

Conclusion

They apply to contracts by post as well as instantaneous communications. Even thought, in the United States of America the instantaneous communication are treated as postal communications there is no difference between English and American Law: see American restatement S.64, in the case of the contract of the telephone, it has been held in America that the contract is made at the place where the acceptance is spoken, therefore dealing with such a contract the same principal as that applicable in the case of a letter to telegram. Lord Parker made a number of general comments in his judgment which could be seen as obiter dictum: 'The requirement as to actual notification of the acceptance is for the benefit of the offeror, he may waive it and agree to substitution for that requirement of some other conduct by the acceptor. He may do so expressly, as in the advertisement cases, by intimating that he is content with the performance of a condition. Again, he may do so impliedly by indicating a contemplated method of acceptance, for example, by postal telegram. In such a case he does not expressly dispense with actual notification, but he is held to have done so impliedly on grounds of expediency'. 1 1B &Ald.681 2)1 H.L.C 381 3 (1872)L.R.7Ch.587 4 (1871)L.R.6Exch.108 5 (1879)4Ex.D.216 6 (1892)2Ch.27,32; 8 T.L.B. 459 7 (1870)L.R. 6Exch. 7. 8 (1888)20 Q.B.D. 640 9 (1904)1Ch.305; 20T.L.R. 125 1 ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Law of Contract section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Law of Contract essays

  1. Marked by a teacher

    "The requirement of consideration is an unnecessary complication in the formation of contracts."

    4 star(s)

    Lord Denning held otherwise however, in the case of Evenden v Guildford City FC [1975] with the view that such need was not vital. As to the need for reliance, generally, a party would have to rely on the promise to his detriment.

  2. Marked by a teacher

    Contract Law - Offer And Acceptance

    3 star(s)

    terms, the original offer is terminated and counter-offer is made * In the counter-offer, the offeror becomes offeree and vice versa. Hyde v Wrench (1840) 6 June W offered to sell his estate to H for �1000; H offered �950 27 June W rejected H's offer, 29 June H offered �1000.

  1. Four ways in which a contract may be discharged.

    After some portions of the work had been finished the premises, with all the materials thereon, were destroyed by an accidental fire. Chandler v Webster [1904] 1 KB 493. The defendant agreed to let a room, for the purpose of viewing the coronation procession, for �141.

  2. Offer and Acceptance

    offer if it is completely inconsistent with the first is Picksford v Celestrica (2003) where Picksford sent a fax but later sent a second fax with more definite details which was seen as a counter offer. Celestrica sent a confirmation with different terms agreeing with the first fax, this being a second counter offer.

  1. Postal Acceptance Rule

    The most frequently cited justification for retention of the rule is that "of business convenience, which stems from the need to create certainty in contractual relations. If acceptance is complete upon proper posting, this effectively allows the offeree to structure his or her affairs on the basis that a binding contract is formed on postage.

  2. I have been asked to advise a client on considering contracting with a building ...

    (Taken from Common Law 1 BPP) The outcome of the case was that she was entitled to the debt with interest. No consideration had been given by the claimant for the waiver of any part of her rights against him.

  1. Outline the basic rule of the law of contract regarding the effective revocation of ...

    is a reasonable way to accept an offer the acceptance is effective on posting The Household Fire v Grant. Thus Jane is in breach of contract. The situation could also be argued on a detrimental reliance part. It would be unfair if Jane was not in breach, since Louise did

  2. DIFFEERENT AREAS OF CONTRACT LAW

    of a business to set up or attempt to set up rival businesses. So if Hermione has got a contract with Piers with a clause in it with his employment to prevent him from working with a business competitor in the EU for 18 months it is meant that he

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work