Adams v. Lindsell

"Adams v. Lindsell" (1818) 1 B & Ald 681; 106 ER 250; [1818] [http://www.bailii.org/ew/cases/EWHC/KB/1818/J59.html EWHC KB J59] , (K.B.) was an English contract case in which the "postal rule" for acceptance of an offer was first established.

Facts

The case involved two parties in the sale of wool. On 2 September, the defendants wrote to the plaintiffs offering to sell them certain fleeces of wool and requiring an answer in the course of post. The defendants, misdirected the letter so that the plaintiffs did not receive it until 5 September. The plaintiffs posted their acceptance on the same day but it was not received until 9 September. Meanwhile, on 8 September, the defendants, not having received an answer by 7 September as they have expected, sold the wool to someone else.

Judgment

The defendant's offer was accepted by the plaintiff "in course of post" as specified. The final sentence of the judgment states: “Then as to the delay in notifying the acceptance, that arises entirely from the mistake of the defendants, and it therefore must be taken as against them, that the plaintiffs answer was received in course of post.” Therefore, there was a valid contract between the plaintiff and the defendant and the defendant was in breach of contract by selling the wool to a third party.

Remarks

This case in the first step towards establishing the postal acceptance rule (mailbox rule). It was not until 1892 in "Henthorn v. Fraser" [1892] 2 Ch 27 that the court determined the precise timing of the acceptance, that is the moment the letter of acceptance is posted. (See also "Entores Ltd v Miles Far East Corporation" [1955] 2 QB 327, CA).

ee also

*Agreement in English law
*Offer and acceptance

References

[http://www.bailii.org/ew/cases/EWHC/KB/1818/J59.html "Adams" v. "Lindsell" Decision transcript]
*Poole, Jill (LLB, LLM). "Casebook on Contract Law" 7th Edition, Oxford 2005.