Tuesday, 4 May 2010

Entorres v Miles Far East [1955] 2 QB 327

Entorres v Miles Far East [1955] 2 QB 327
Entores was a London-based trading company that sent an offer for the purchase of copper cathodes by telex from a company based in Amsterdam.

The Dutch company sent an acceptance by telex.

The contract was not fulfilled by the Dutch Company and so Entores attempted to sue the owner of the Dutch company for damages.

The controlling company, Miles Far East Corp., was based in the U.S. and so Entores could only bring the action in the U.S. if it could be found that the contract was formed in London rather than Amsterdam.

It was held that the contract was formed in London. The instantaneous nature of telex meant that regular rules of acceptance by post did not apply. The general principle that acceptance takes place when communicated applies to all instantaneous forms of communication.

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