Case Summary - Leon Van Tienhoven & Co. v. Byrne & Co. (1880) CCP
Leon Van Tienhoven & Co. v. Byrne & Co. (1880) CCP: When an offer is withdrawn, the postal rule does not apply. Facts The defendants (in Cardiff) wrote to the plaintiffs (in New York) on October 1, 1879, proposing to sell them 1,000 boxes of tin plates under certain conditions. The defendants wrote again on October 8, cancelling their offer. The plaintiffs received the offer on October 11th and accepted it by telegram the same day, followed by a letter on October 15th. The plaintiffs learned of the defendants' withdrawal of the offer on October 20. Decision Because a withdrawal of an offer must be conveyed to the offeree in order to be effective, there was a genuine contract. A withdrawal is not subject to the postal rule because it is only disclosed when the offeree receives it. This is because the postal rule is (per Lindley J): ‘… based upon the principle that the writer of the offer has expressly or impliedly assented to treat an answer to him by letter duly posted as a sufficient acceptance and notification to himself, or, in other words, he has made the post office his agent to receive the acceptance and notification of it.’
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