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Transcript

Brinkibon v Stahag Stahl und Stahlwarenhandelsgesellschaft mbH

Brinkibon tries to sue Stahag for breach of contract

Stahag Stahl und Stahlwarenhandelsgesellschaft mbH

Brinkibon

  • London company
  • buys steel from Stahag
  • based in Vienna, Austria
  • sells steel to Brinkibon

Decision

  • formation of contract in Vienna
  • formation generally occurs in place where acceptance is received

Where was the formation of contract?

Is the "postal rule" applicable?

  • acceptance takes effect when a letter is posted
  • Lords accepted the earlier leading decision of Entores v Miles Far East Co. [1955] on acceptance via telex
  • "postal rule" not applied to instantaneous communication
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