Case Law explained by Barrister Amna
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📝 Name of the Case
Entores Ltd v Miles Far East Corporation (1955)
Court: Court of Appeal (England)
Citation: [1955] 2 QB 327
📚 Introduction
This is a very important case in contract law. It explains when a contract is formed if the offer and acceptance are communicated using instant communication like telex (an old form of instant messaging).
👩⚖️ Parties Involved
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Entores Ltd: A company based in London, UK (the claimant).
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Miles Far East Corporation: A company based in Amsterdam, Netherlands (the defendant).
🖥️ Background / Facts of the Case
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Entores Ltd in London sent a telex message to Miles Far East Corporation in Amsterdam offering to buy some goods.
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Miles Far East Corporation sent a telex reply accepting the offer.
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Later, there was a dispute, and Entores Ltd wanted to sue the Dutch company in England.
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But the Dutch company argued that the contract was formed in Amsterdam, so the case must be tried in Netherlands, not England.
❓ Main Legal Issue
Where was the contract formed?
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Was the contract made in London (where the telex was received)?
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Or in Amsterdam (where the telex was sent)?
📬 Important Legal Concepts
1. ✉️ Offer and Acceptance
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A contract is made when an offer is accepted.
2. 🕰️ Instant vs Non-Instant Communication
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There are two types of communication:
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Instant (like telex, telephone, email, or face-to-face)
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Non-instant (like postal letters)
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⚖️ Decision of the Court
The Court of Appeal said:
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A telex is like a telephone call — it's instant communication.
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When communication is instant, the contract is made where the acceptance is received — not where it is sent.
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So, in this case, the acceptance was received in London.
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Therefore, the contract was made in London, and the case could be tried in England.
🧠 Key Legal Principles from the Case
✅ 1. Acceptance Must Be Received
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In instant communication, acceptance is only valid when the other party receives it.
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If the telex fails or is not heard, there is no contract.
🏛️ 2. Place of Contract Formation
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The contract is made at the place where the acceptance is received, not where it is sent.
📞 3. Telex Is Like a Phone Call
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The court said using telex is like talking on the phone — both sides can immediately communicate.
🔍 Example Given by the Judge
The judge, Lord Denning, gave this example:
If you shout an offer across a river and the other person shouts back “I accept,” but you don’t hear it because of a plane flying overhead — then no contract is formed unless you hear the acceptance.
This shows that in instant communication, hearing (or receiving) the acceptance is very important.
💼 Why This Case Is Important
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It explains how contracts are made through instant communication.
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It shows that receiving the acceptance is necessary for a valid contract.
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It helps decide which country or court can hear a case (jurisdiction).
📌 Summary of the Judgment
| Question | Answer |
|---|---|
| Was telex valid communication? | Yes, it was instant |
| Where was the contract formed? | In London (where received) |
| Who won the case? | Entores Ltd (UK company) |
📚 Legal Rule from the Case
In instant communication, acceptance is only complete when it is received by the offeror.
🧾 Conclusion
Entores v Miles Far East Corp (1955) is a very useful case for understanding how and where contracts are made when people use instant messaging (like email, telex, or phone). The key point is that the contract is formed only when acceptance is received, not when it is sent.