Instantaneous Communication In Contracts Flashcards
Entores v Miles Far East Corporation
Facts: • C was an English company and was negotiating over telex with D an American company
• C made a counter offer to D which was accepted by D’s Office
• C alleged breach and claimed contract made in England
Judgement: Contract formed in England
L.P: • Acceptance took place where it was received (aeroplane analogy)
• Only helps with where Contract is formed not when
Tenax Steamship v The Brimnes
Facts: • The hire of D’s vessel was to be paid monthly by C
• D sent notice by telex to withdraw on grounds of late payment
• on the same day C instructed their bankers to pay the amount to D
• C claimed withdrawal was in breach
Judgment: For defendant
L.P: • Effective when received on charters telex during office hours
Brinkibon v Stahag Stahl
Facts: • Parties negotiating sale of steel bars
• Accepted a telex sent from London to Vienna, the terms offered by an Austrian company
•Contract was breached and arguments ensued about where the contract was formed
Judgment: For D
L.P: • Lord Wilberforce: “ No universal rule can cover all cases”
• Confirmed decision in Entores
Mondial Shipping and Chartering v Astate Shipping
Facts: • Payment was not made for hire of a vessel and D sent a notice for it to be withdrawn if payment was not made within 48 hours
• They paid but it happened again and a notice was sent late at night which was received instantaneously
•C claimed withdrawal to be unlawful
Judgment: For Claimant
L.P: • Effective when the acceptor could reasonably have expected it to be read
• Acceptor should assume communication will be read at a time that could reasonably be expected in the normal course of events
Thomas v BPE Solicitors
Facts: • Alleged D was negligent in connection with sale of C’s shares
Judgment: For Claimant
L.P: • D argued email was sent outside of normal business hours
• In context, email was inside normal business hours as both parties had agreed to conclude that day
Greenclose v National Westminster bank
Postal rule has no application to emails
