Brinkibon Ltd v Stahag Stahl und Stahlwarenhandelsgesellschaft mbH
- Brinkibon Ltd v Stahag Stahl und Stahlwarenhandelsgesellschaft mbH
"Brinkibon Ltd v Stahag Stahl" (1982), [1983] 2 A.C. 34 is a leading decision of the House of Lords on the formation of a contract using telecommunication. The Lords largely accepted the earlier leading decision of "Entores v Miles Far East Co." [1955] 2 QB 327 on acceptance via telex.
Background
Brinkibon was a London company that purchased steel from Stahag, a seller based in Austria. Brinkibon sent their acceptance to a Stahag offer by Telex to Vienna. Brinkibon later wanted to issue a writ against Stahag and applied serve an out of jurisdiction party. They would only be able to do so if the contract had been formed in England.
The question at issue was where the contract was formed.
Decision
The Lords decided that the contract was formed in Vienna. They accepted the principle in "Entores v Miles Far East Co" where in the case of instantaneous communication, which included telex, the formation occurs in the place where the acceptance is received.
Lord Wilberforce, however, did not see the rule as applying to all circumstances:
External links
* [http://www.thomson.com.au/catalogue/getFile.asp?downloadId=130 Full text of decision] (pdf)
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