Harvey v Facey

A statement of the lowest price a party would accept is not an offer to sell.

Citation
[1893] AC 552
Court
Privy Council
Year
1893
Subject
Contract Law
Topic
Offer and acceptance

Facts

The parties were negotiating over a property in Jamaica called Bumper Hall Pen. The plaintiffs sent the defendant a telegram reading: Will you sell us Bumper Hall Pen? Telegraph lowest cash price. The defendant replied by telegram: Lowest price for Bumper Hall Pen £900. The plaintiffs then telegraphed: 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. The defendant made no reply and did not sell, and the plaintiffs sued for specific performance.

Legal principle

The Privy Council held that there was no binding contract. The plaintiffs had asked two questions: whether the defendant would sell, and what his lowest price was. The defendant answered only the second, giving information about the price, and gave no answer to the first. A statement of the lowest price at which a person might sell is not an offer to sell at that price. The plaintiffs' final telegram was therefore itself an offer, which the defendant never accepted.

Related cases on offer and acceptance

Studying contract law? Our tutors help you understand and apply cases like this in essays, problem questions and exams. Request a quote or browse our law notes.

Back to all law cases

This summary is for study and revision and is not legal advice. Although our case summaries are checked for accuracy, we do not guarantee that they are free from errors or omissions. Always read the full judgment for the court's reasoning.

Contact Us

Enquire about our bespoke academic solutions