Byrne v Van Tienhoven
Encyclopedia
Byrne v Van Tienhoven [1880] 5 CPD 344 is a leading English contract law
case on the issue of revocation
in relation to the postal rule. In it Lindley J
of the High Court
Common Pleas Division
ruled that an offer is only revoked by direct communication with the offeree, and that the postal rule does not apply in revocation; while simply posting a letter counts as a valid acceptance, it does not count as valid revocation.
to Byrne & Co in New York
, offering 1000 boxes of tinplates for sale on 1 October. Byrne and Co got the letter on 11 October. They telegraphed acceptance on the same day. But on 8 October Van Tienhoven had sent another letter withdrawing their offer, because tinplate prices had just risen 25%. They refused to go through with the sale.
held that the withdrawal of the offer was not effective until it was communicated. His judgment stated the following.
English contract law
English contract law is a body of law regulating contracts in England and Wales. With its roots in the lex mercatoria and the activism of the judiciary during the industrial revolution, it shares a heritage with countries across the Commonwealth , and the United States...
case on the issue of revocation
Revocation
Revocation is the act of recall or annulment. It is the reversal of an act, the recalling of a grant, or the making void of some deed previously existing.-Contract law:...
in relation to the postal rule. In it Lindley J
Nathaniel Lindley, Baron Lindley
Sir Nathaniel Lindley, Baron Lindley SL PC FRS was an English judge.-Biography:He was the second son of the botanist John Lindley, born at Acton Green, London. He was educated at University College School, and studied for a time at University College, London...
of the High Court
High Court of Justice
The High Court of Justice is, together with the Court of Appeal and the Crown Court, one of the Senior Courts of England and Wales...
Common Pleas Division
Court of Common Pleas (England)
The Court of Common Pleas, or Common Bench, was a common law court in the English legal system that covered "common pleas"; actions between subject and subject, which did not concern the king. Created in the late 12th to early 13th century after splitting from the Exchequer of Pleas, the Common...
ruled that an offer is only revoked by direct communication with the offeree, and that the postal rule does not apply in revocation; while simply posting a letter counts as a valid acceptance, it does not count as valid revocation.
Facts
Van Tienhoven & Co posted a letter from their office in CardiffCardiff
Cardiff is the capital, largest city and most populous county of Wales and the 10th largest city in the United Kingdom. The city is Wales' chief commercial centre, the base for most national cultural and sporting institutions, the Welsh national media, and the seat of the National Assembly for...
to Byrne & Co in New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
, offering 1000 boxes of tinplates for sale on 1 October. Byrne and Co got the letter on 11 October. They telegraphed acceptance on the same day. But on 8 October Van Tienhoven had sent another letter withdrawing their offer, because tinplate prices had just risen 25%. They refused to go through with the sale.
Judgment
Lindley JNathaniel Lindley, Baron Lindley
Sir Nathaniel Lindley, Baron Lindley SL PC FRS was an English judge.-Biography:He was the second son of the botanist John Lindley, born at Acton Green, London. He was educated at University College School, and studied for a time at University College, London...
held that the withdrawal of the offer was not effective until it was communicated. His judgment stated the following.