Entores
Ltd v Miles Far East Corporation
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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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