CASE STUDY

 
FELTHOUSE VS. BINDLEY
 
CITATIONS:-(1862) 11 Cb (NS) 869; [1862] EWHC CPJ
35; 142 ER 1037
YEAR:- 1862
COURT:- Court of Exequer Chamber
JUDGES:- Willer,Byles And Keating JJ
COUNTRY:- United Kingdom
AREA OF LAW:- Acceptance
FACTS:-
Felthouse negotiated to purchase a horse from his nephew.
There was a mix-up with the price, as the uncle offered less
than the nephew desired. The uncle gave a definite offer to
the nephew in January, however no response was given,
and no actions were performed as the horse remained in
the possession of the nephew. In February the nephew sold
all of his farm stock in an auction, and the horse, despite
the nephew's instructions that it be reserved, was sold.
Felthouse sued the auctioneer, Bindley, in conversion to
recover the horse. Felthouse was successful at trial,
receiving £33, which Bindley appealed.
 ISSUE:-
Paul Felthouse sued Mr Bindley in the tort of conversion,
with it necessary to show that the horse was his property, in
order to prove there was a valid contract. Mr Bindley
argued there was no valid contract for the horse, since the
nephew had not communicated his acceptance of the
complainant’s offer. The issue in this case was whether
silence or a failure to reject an offer amount to acceptance.
▪  
▪ JUDGEMENT:-
▪ The court ruled that Felthouse did not have ownership of the
horse as there was no acceptance of the contract. Acceptance
must be communicated clearly and cannot be imposed due to
silence of one of the parties. The uncle had no right to impose a
sale through silence whereby the contract would only fail by
repudiation. Though the nephew expressed interest in
completing the sale there was no communication of that
intention until after the horse was sold at auction on 25
February. The nephew's letter of 27 February which was
submitted as evidence by Felthouse was judged to be the first
instance of communication where the acceptance was
communicated to the offeror(Felthouse).And by this time, the
horse had already been sold. Accordingly Felthouse had no
interest in the property.
▪  
 PRESENTED BY:-
Harsh Kumar Singh:-20GSOL1030024
Abhay Singh Sengar:-20GSOL1030050
Priyanshu Kuril:-20GSOL1030031
Course:-BBA LLB(Hons.)