Harvey v Facey
Encyclopedia
Harvey v Facey [1893] UKPC 1, [1893] AC 552 is a contract law case decided by the United Kingdom
Judicial Committee of the Privy Council
which in 1893 held final legal jurisdiction over most of the British Caribbean. Its importance in case law
is that it defined the difference between an offer and an invitation to treat. The Privy Council held that indication of lowest acceptable price does not constitute an offer to sell. Rather, it is considered an offer to treat (i.e., to enter into negotiations).
. The defendant, Mr LM Facey, had been carrying on negotiations with the Mayor and Council of Kingston to sell a piece of property to Kingston City
. On 7 October 1891, Facey was traveling on a train between Kingston and Porus
and the appellant, Harvey, who wanted the property to be sold to him rather than to the City, sent Facey a telegram. It said, "Will you sell us Bumper Hall Pen? Telegraph lowest cash price-answer paid". Facey replied on the same day: "Lowest price for Bumper Hall Pen £900." Harvey then replied in the following words. "We agree to buy Bumper Hall Pen for the sum of nine hundred pounds asked by you. Please send us your title deed in order that we may get early possession."
Facey, however refused to sell at that price, at which Harvey sued. Facey successfully defended his action at trial, but Harvey appealed to the Court of Appeal, which reversed the trial court decision. The appellants obtained leave from the Supreme Court to appeal to Her Majesty in Council and afterwards obtained special leave to appeal to the Privy Council. The Privy Council reversed the Supreme Court's opinion, reinstating the trial court's decision and stating the reason for its action.
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
Judicial Committee of the Privy Council
Judicial Committee of the Privy Council
The Judicial Committee of the Privy Council is one of the highest courts in the United Kingdom. Established by the Judicial Committee Act 1833 to hear appeals formerly heard by the King in Council The Judicial Committee of the Privy Council (JCPC) is one of the highest courts in the United...
which in 1893 held final legal jurisdiction over most of the British Caribbean. Its importance in case law
Case law
In law, case law is the set of reported judicial decisions of selected appellate courts and other courts of first instance which make new interpretations of the law and, therefore, can be cited as precedents in a process known as stare decisis...
is that it defined the difference between an offer and an invitation to treat. The Privy Council held that indication of lowest acceptable price does not constitute an offer to sell. Rather, it is considered an offer to treat (i.e., to enter into negotiations).
Facts
The case involved negotiations over a property in JamaicaJamaica
Jamaica is an island nation of the Greater Antilles, in length, up to in width and 10,990 square kilometres in area. It is situated in the Caribbean Sea, about south of Cuba, and west of Hispaniola, the island harbouring the nation-states Haiti and the Dominican Republic...
. The defendant, Mr LM Facey, had been carrying on negotiations with the Mayor and Council of Kingston to sell a piece of property to Kingston City
Kingston City
Kingston City was a federal electoral district represented in the Canadian House of Commons from 1925 to 1953. It was located in the province of Ontario...
. On 7 October 1891, Facey was traveling on a train between Kingston and Porus
Porus
King Porus was the King of Paurava, an ancient state within the territory of modern day Punjab located between the Jhelum and the Chenab rivers, and later of dominions extending to the Beas...
and the appellant, Harvey, who wanted the property to be sold to him rather than to the City, sent Facey a telegram. It said, "Will you sell us Bumper Hall Pen? Telegraph lowest cash price-answer paid". Facey replied on the same day: "Lowest price for Bumper Hall Pen £900." Harvey then replied in the following words. "We agree to buy Bumper Hall Pen for the sum of nine hundred pounds asked by you. Please send us your title deed in order that we may get early possession."
Facey, however refused to sell at that price, at which Harvey sued. Facey successfully defended his action at trial, but Harvey appealed to the Court of Appeal, which reversed the trial court decision. The appellants obtained leave from the Supreme Court to appeal to Her Majesty in Council and afterwards obtained special leave to appeal to the Privy Council. The Privy Council reversed the Supreme Court's opinion, reinstating the trial court's decision and stating the reason for its action.