Since the contract was therefore only formed when and where the telex was received, the place of formation was London. CA said that it was to be in UK jurisdiction because in cases of instantaneous communication (UNLIKE postal communication) the contract only has effect once it is received. The Dutch company sent an acceptance by telex. Company Registration No: 4964706. 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They had sent an offer to purchase 100 tons of copper cathodes to the defendants, Miles Far East … P, in the UK, made an offer to D in Holland by telex and D accepted by telex message. This site uses cookies to improve your experience. Application was now made for leave to serve notice of a writ out of the jurisdiction on the grounds that the action was brought to recover damages for breach of a contract made within the jurisdiction or by implication to be governed by English law. If it was when the contract acceptance was sent, damages would be dealt with under Dutch law. The contract is only complete when the acceptance is received by the offeror; and the contract is made at the place where the acceptance is received. Entores Ltd v Miles Far East Corporation: CA 1955. The plaintiff traded from London, and telexed an offer to purchase cathodes to a company in Holland, who signified their acceptance by return, again by telex. Applying the principles which I have stated, I think that the contract in this case was made in London where the acceptance was received. Miles Far East Corporation are a corporation with headquarters at 150 Broadway, New York, in the State of New York. Copyright © If you have purchased a print title that contains an access code, please see the information provided with the code or instructions printed within the title for information about how to register your code. Denning LJ found that the regular postal rule did not apply for instantaneous means of communications such as a telex. The contract is only complete when I have his answer accepting the offer. Thus, the contract was created in London. The controlling company, Entores, was based in the UK and under English law Entores could only bring the action in the UK (serve notice of writ outside the jurisdiction) if it could prove that the contract was formed within the jurisdiction, i.e. Judgement for the case Entores v Miles Far East Corp. P, in the UK, made an offer to D in Holland by telex and D accepted by telex message. Before making any decision, you must read the full case report and take professional advice as appropriate. But there is no clear rule about contracts made by telephone or by Telex. Contract – Acceptance – Postal Rule – Damages – Instantaneous communication. They say that the contract by Telex was varied by letter posted in Holland and accepted by conduct in England: and that this amounted to a new contract made in England. It was stated that the postal rule did not apply for instantaneous communications. PRINTED FROM OXFORD LAW TROVE (www.oxfordlawtrove.com). Essential Cases: Contract Law provides a bridge between course textbooks and key case judgments. The contract is only complete when the acceptance is received by the offeror: and the contract is made at the place where the acceptance is received. Entorres v Miles Far East [1955] 2 QB 327 Entores was a London-based trading company that sent an offer for the purchase of copper cathodes by telex from a company based in Amsterdam. Facts. a ton. swarb.co.uk is published by David Swarbrick of 10 Halifax Road, Brighouse West Yorkshire HD6 2AG. In view of this divergence, I think that we must consider the matter on principle: and so considered, I have come to the view I have stated, and I am glad to see that Professor Winfield in this country (55 Law Quarterly Review 514), and Professor Williston in the United States of America (Contracts, § 82, p. 239), take the same view.

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