Felthouse v Bindley

Court of Common Pleas

08 July 1862

Case Analysis
Where Reported

142 E.R. 1037; (1862) 11 C.B. N.S. 869; (1862) 6 L.T. 157

Case Digest

Subject: Contracts

Keywords: Offer and acceptance

Summary: For a contract to come into existence, the offeree had to communicate his acceptance
of the relevant offer to the offeror.

Abstract: The plaintiff (F) brought an action against the defendant auctioneer (B) for the
conversion of a horse. In December 1860, a conversation had taken place between F and his
nephew (N) relating to the purchase of a horse by F from N. On January 1, 1861, N wrote to F
stating that he had heard from his father that F considered that he had bought the horse for £30.
N asserted that the price was not £30 but 30 guineas. On January 2, F wrote to N stating that he
thought that, although the price offered was 30 guineas, they had done a deal at £30. F's letter
concluded as follows: "However, as there may be a mistake about him, I will split the
difference ... If I hear no more about him, I consider the horse mine at [£30 and 15 shillings]". N
did not reply to that letter. The horse was sold by mistake at an auction conducted by B on
February 25. On February 27, N wrote to F apologising for the mistake, referring to the horse "I
sold to you" and offering to let him have another horse. The issue was whether the horse had
become the property of F at the time of the sale on February 25.

Judgment for defendant. There had been no complete bargain on January 2, and the offer made
by F in his letter of that date stood as an open offer. Although the events had shown that N in his
own mind intended F to have the horse at the price which F had named, namely £30 and 15
shillings, he had not communicated his intention to F or done anything to bind himself. Nothing,
therefore, had been done to vest the property in the horse in F before February 25, when the
horse was sold by B. There had been no bargain to pass the property in the horse to F and he
therefore had no right to complain of the sale.