QSM 457

Byrne & Co v Leon Van Tienhoven[1880 LR 5 CPD 344

- Defendants were a company based in Cardiff. On 1 October they posted a letter to the plaintiff offering to sell 1000 boxes of tinplates. The plaintiff received the letter on 11 October and immediately accepted by telegram on the same day (acceptance took place as soon as it sent out). On 8 October, the defendants had written to revoke their offer. However, the letter reached to plaintiff on 20 October. - Held: there was a binding cotract because revocation could only take effect on communication but the acceptance by telegram took effect as soon as it was sent.

1st October:Defendant posted offer

8th October:Defendant wrote to revoke offer

11th October:Plaintiff received and accepted the offer via telegram

20th October: Plaintiff received revocation of offer

CONTRACT FORMED