Henthorn v Fraser [1892]
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Henthorn v Fraser [1892] 2 Ch 27 is an important case in English contract law in relation to the postal rule which is a common law principle that addresses the timing of acceptance in contract formation when parties communicate by post. The general rule is that acceptance is effective when posted, not when received. This case reaffirmed this principle and clarified that for the postal rule to apply, it must be reasonable for the offeror to expect that acceptance could be communicated by post.
The parties involved were located in different towns – the defendant in Liverpool and the claimant in Birkenhead. The defendant, during negotiations for the purchase of houses, presented the claimant with a written option to buy certain properties within 14 days. The following day, the defendant decided to withdraw the offer and communicated this withdrawal by post. However, the withdrawal reached the claimant only after 5:00pm. On the same day, the claimant, unaware of the withdrawal, posted an unconditional acceptance of the offer. The acceptance letter reached the defendant after its office had closed, and it was opened the next morning.
The case builds upon the precedent set by Adams v Lindsell [1818], which established the concept that acceptance is valid when the letter of acceptance is posted. In Henthorn v Fraser, the fact that both parties were located in different towns was considered a key factor in justifying the expectation that acceptance might be communicated by post.
The judgment handed down by Lord Herschell, emphasises the importance of the parties' contemplation regarding the use of the postal service for communication. If, based on the circumstances, it is reasonable for the parties to anticipate that the post might be used to convey acceptance, then the acceptance is deemed complete upon posting.
In summary, this case contributes to the development of contract law by clarifying the application of the postal rule and emphasising the significance of the parties' reasonable expectations in determining the timing of acceptance in contractual relationships involving postal communication.
The parties involved were located in different towns – the defendant in Liverpool and the claimant in Birkenhead. The defendant, during negotiations for the purchase of houses, presented the claimant with a written option to buy certain properties within 14 days. The following day, the defendant decided to withdraw the offer and communicated this withdrawal by post. However, the withdrawal reached the claimant only after 5:00pm. On the same day, the claimant, unaware of the withdrawal, posted an unconditional acceptance of the offer. The acceptance letter reached the defendant after its office had closed, and it was opened the next morning.
The case builds upon the precedent set by Adams v Lindsell [1818], which established the concept that acceptance is valid when the letter of acceptance is posted. In Henthorn v Fraser, the fact that both parties were located in different towns was considered a key factor in justifying the expectation that acceptance might be communicated by post.
The judgment handed down by Lord Herschell, emphasises the importance of the parties' contemplation regarding the use of the postal service for communication. If, based on the circumstances, it is reasonable for the parties to anticipate that the post might be used to convey acceptance, then the acceptance is deemed complete upon posting.
In summary, this case contributes to the development of contract law by clarifying the application of the postal rule and emphasising the significance of the parties' reasonable expectations in determining the timing of acceptance in contractual relationships involving postal communication.
