Case Summary - Entores Ltd v Miles Far East Corporation (1955) CA.
The postal rule does not apply to instantaneous communications, according to Entores Ltd v Miles Far East Corporation (1955) CA. Facts The plaintiff in England and the defendants in Holland negotiated a telex contract for the sale of 100 tonnes of copper cathodes. The defendants challenged the court's decision to allow leave to serve a writ outside of the jurisdiction. Per Denning LJ: ‘The offer was sent by telex from England … and accepted by telex from Holland. The question for our determination is where was the contract made?’ A telex contract is formed, according to the Court of Appeal, when acceptance is obtained, in this example in England. The postal rule is an exception to the general rule that acceptance should be conveyed to the offeror. It is a general law that applies to all forms of instantaneous communication, including face-to-face conversation, telephone communication, and telex communication. This is because, in most cases, the sender of an acceptance knows whether or not the acceptance has been received by the offeror. Per Denning LJ (obiter): ‘If a case arose where an acceptance was not received and the offeror was at fault in not informing the offeree of the problem, the offeror would be estopped from denying receipt and would be bound by the contract.’
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