Dunlop v Higgins [1848]
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Dunlop v Higgins [1848] 1 HLC 381 is a notable case in the Scots law of contract formation that confirmed the application of the postal rule. The decision drew upon the precedent set by the case of Adams v Lindsell [1818].
Dunlop & Company made an offer by post to sell 2,000 tons of pig-iron at a specified price. This offer was dispatched on 28 January 1845, reaching Higgins on 30 January 1845. In response, Higgins posted the letter of acceptance on the same day, but due to some delay, the defendant received it on 1 February 1845. The defendant, upon receipt, refused to supply the goods, citing an increase in prices.
The judgment in Dunlop v Higgins affirmed that the acceptor should not be held responsible for any delay occurring during the transit of the acceptance letter. As a result, the court concluded that a binding contract existed between the parties.
The key principle established by the case is that the act of posting a letter accepting an offer creates a legally binding contract, even if the letter fails to arrive at its destination due to a fault on the part of the postal service. This application of the postal rule ensures that acceptance is deemed effective upon posting, bringing certainty to contract formation through postal communication.
Dunlop & Company made an offer by post to sell 2,000 tons of pig-iron at a specified price. This offer was dispatched on 28 January 1845, reaching Higgins on 30 January 1845. In response, Higgins posted the letter of acceptance on the same day, but due to some delay, the defendant received it on 1 February 1845. The defendant, upon receipt, refused to supply the goods, citing an increase in prices.
The judgment in Dunlop v Higgins affirmed that the acceptor should not be held responsible for any delay occurring during the transit of the acceptance letter. As a result, the court concluded that a binding contract existed between the parties.
The key principle established by the case is that the act of posting a letter accepting an offer creates a legally binding contract, even if the letter fails to arrive at its destination due to a fault on the part of the postal service. This application of the postal rule ensures that acceptance is deemed effective upon posting, bringing certainty to contract formation through postal communication.
