Entores Ltd v Miles Far East Corporation [1955]

Court: Court of Appeal

Facts: Entores sent an offer via telex to a Dutch company, which responded with acceptance via telex. The issue arose regarding where the contract was formed—London or Amsterdam.

Issue: When is a contract formed through instantaneous communication, such as telex?

Held: The court found that the contract was formed in London, where the acceptance was received. Instantaneous communications require receipt of acceptance to form a binding contract.

Key Judicial Statement: Denning LJ emphasized that in cases of instantaneous communication, the contract is formed when and where the acceptance is received, not when it is sent.

💡 Leveluplaw: Unlike postal communications, contracts formed via instantaneous communication are binding when acceptance is received by the offeror.