Case Summary - Stahag Stahl GmbH vs. Brinkibon Ltd (1982) HL
Stahag Stahl GmbH vs. Brinkibon Ltd (1982) HL: When communication is instantaneous, the contract is formed when and when the acceptance is received. Facts The appellants in London and the respondents in Vienna made a telex contract for the sale of steel bars. The appellants asked for permission to serve a writ outside of the court's jurisdiction. According to Lord Wilberforce, the question was "whether an acceptance by telex sent from London but When a contract is received in Vienna, it is made in London or Vienna.' Decision It was held that Entores Ltd v Miles Far East Corporation (above) was correctly decided. Lord Wilberforce said that: ‘… the simple case of instantaneous communication between principals [so that] the contract (if any) was made when and where the acceptance was received. This was … in Vienna.’ However, their Lordships left open the possibility that the rule might not apply to a less straightforward telex case. Per Lord Wilberforce: ‘No universal rule can cover all such cases: they must be resolved by reference to the intentions of the parties, by sound business practice and in some cases by a judgment where the risks should lie.’
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