Stevenson, Jacques & Co v McLean (1880) 5 QBD 346 is an English contract law

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 concerning the rules on communication of acceptance by telegraph. Its approach contrasts to the postal rule.

Facts

McLean wrote to Stevenson, Jacques & Co. in Middlesbrough asking if he could get an offer for warrants on iron ore. Stevenson said 40s per ton in cash was the lowest price, the offer open till Monday. At 9.42am, McLean telegraphed saying ‘Please wire whether you would accept forty for delivery over two months, or if not, longest limit you could give.’ Stevenson did not answer, and sold at 1.25pm to someone else. McLean, before hearing, telegraphed saying he accepted the original offer. Stevenson refused to deliver the iron, and McLean brought an action for non-delivery.

Judgment

Lush J held that the defendant's telegram at 9.42 was not a rejection of the offer but a mere inquiry about whether the terms could be modified. Although Stevenson was at liberty to revoke the offer before Monday finished, that was not effective until it reached the plaintiffs.

See also

• Postal rule

Lush J held that the defendant's (should be plaintiff's) telegram at 9.42 was not a rejection of the offer but a mere inquiry about whether the terms could be modified. Although Stevenson was at liberty to revoke the offer before Monday finished, that was not effective until it reached the plaintiffs.