The other man may not know the precise moment when the line failed. 10s. The Plaintiffs are an English company. Suppose, for instance, that I make an offer to a man by telephone and, in the middle of his reply, the line goes “dead” so that I do not hear his words of acceptance. The contract is only complete when I have his answer accepting the offer. Each company has a teleprinter machine in its office; and each has a Telex number like a telephone number.

If he wishes to make a contract ? He further submitted that great difficulties would arise if Telex communications were treated differently from acceptances by post or telegram. The offer was sent by Telex from England offering to pay 239. Entores Ltd. are a company registered and resident in England, the registered office being in the City of London. It is a matter of considerable importance to them and others in like position as to what their position really is. Communications by Telex are comparatively new. If he wishes to make a contract, he must therefore get through again so as to make sure that I heard. Dutch company: “Yes, price 239.10.0. for longton”. The Dutch company sent an acceptance by telex. When one company wishes to send a message to the other, it gets the Post Office to connect up the machines. To the same effect is the Judgment of Lord Justice Thesiger in Household Fire Insurance Co. v. Grant, (1879) 4 Exchequer Division, 216, in which he points out that where the parties are at a distance the balance of convenience dictates that the contract shall be deemed complete when the acceptance is handed to the Post Office. I think the decisions of the Master and the Judge were right and I would dismiss the appeal.

Thus in Adams v. Lindsell (1818) 1 Barnewall and Anderson, 683, the Court pointed out that unless this were so, Again in Dunlop v. Higgins (1848) 1 House of Lords Cases, 381, the Lord Chancellor, Lord Cottenham, pointed out at page 400 that.

(Appellants) Entores Ltd are a company registered and resident in England, with an office in London. The communications are virtually instantaneous, for the moment one party types out the message the other party ought to be receiving it in the ordinary course of things. In September of 1954 a series of communications passed between Entores and Miles by means of an equipment called Telex Service, consisting of a teleprinter and signalling unit and certain necessary subsidiary apparatus possessed by both parties.

I am not sure that this argument about variations is correct. If so, this meant that their acceptance was valid the moment it was sent in the Netherlands. The communications are virtually instantaneous, for the moment one party types out the message the other party ought to be receiving it in the ordinary course … Both the original contract and ensuing variations were made in England and leave can properly be given for service out of the jurisdiction. MR GERALD GARDINER, Q.C.

The variations consisted in the ports of delivery, the provisions of import licence and so forth. MR COOKE: Would your Lordships give me leave to take the matter further? LORD JUSTICE DENNING: This is an interlocutory appeal. They were given leave to serve notice of a writ upon the Defendants in New York out of the jurisdiction. “no contract could ever be completed by the post. MR COOKE: We do not wish to hold up the trial of the action further than necessary.

But if there should be a case where the offeror without any fault on his part does not receive the message of acceptance – yet the sender of it reasonably believes it has got home when it has not – then I think there is no contract.

If the acceptance was effective from the time the telex … LORD JUSTICE DENNING: Yes, appeal dismissed with costs in any event. The defendant claimed that the postal rule applied to this case. Contract created when acceptance received; Reasoning. Entores Ltd v Miles Far East Corporation [1955] EWCA Civ 3 is a landmark English Court of Appeal decision in contract law on the moment of acceptance of a contract over telex. LORD JUSTICE DENNING: This is an interlocutory appeal.

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 was a London-based trading company that sent an offer for the purchase of copper cathodes by telex from a company based in Amsterdam.

In a matter of this kind, however, it is very important that the countries of the world should have the same rule.

But it may happen that the line does not go dead, yet the message does not get through to London. Entorres v Miles Far East [1955] 2 QB 327. They had sent an offer to purchase 100 tons of copper cathodes to the defendants, Miles Far East Corp. Their company was based in Amsterdam and this offer was communicated by Telex, a form … Please log in or sign up for a free trial to access this feature.

and MR S.B.R. The offeror in such circumstances is clearly bound, because he will be estopped from saying that he did not receive the message of acceptance. I find that most of the European countries have substantially the same rule as that I have stated. The Plaintiffs are an English company. The offer was sent by Telex from England offering to pay £239.



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