Similar Henthorn v Fraser, Adams v Lindsell, Entores Ltd v Miles Far East Corp, Byrne & Co v Leon Van Tienhove, Felthouse v Bindley | ||
Dunlop v Higgins [(1848) 1 H.L.C. 381] was an early decision confirming the postal rule in the Scots law of contract formation. The decision was based on the earlier case of Adams v. Lindsell.
Contents
Facts
Dunlop & Company offered by post to sell 2,000 tons of pig-Iron at some price. The offer was sent on January 28, 1845. It reached Higgins on January 30, 1845. Higgins posted the letter of acceptance on the same day. But, the defendant received it on February 1, 1845 with some delay. The defendant refused to supply the goods, because the prices have increased.
Judgment
It was held that the acceptor was not responsible for any delay in the course of the transit. Hence there was a binding contract. The posting of a letter accepting an offer constitutes a binding contract even if the letter never arrives due to the fault of the post office.