Friday, December 14, 2012

Entores Ltd v Miles Far East Corporation case brief

Entores Ltd v Miles Far East Corporation
Facts: Plaintiffs in London made offer by telex to def in Netherlands which defs accepted by telex sent from Neth received in Eng. P sued D for breach of contract.
Issue: where was the contract formed? London or Amsterdam? If deal had been done by post, then the contract would have been formed in Amsterdam, and would be subject to Dutch law

Rule: Acceptance on receipt of notice principle.  However, it was ruled that it would make no sense for an instantaneous reply to an offer to be deemed to be accepted at the place of origination of acceptance, because this would conflict with the law as regards acceptance by telephone, etc.

Application: Since the acceptance was only final after it was received in London, therefore it was held that the contract was completed in England and not in the Netherlands.

Conclusion: The acceptance was deemed to have been made in London, when the telex was read.

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