Glephoni In Entores Ltd. V. Miles Far East Corporation Case Study

Messrs. Girdharilal Parshottamdas and Company - The plaintiff

Kedia Ginning Factory and Oil Mills of Khamgaon - The defendant

Plaintiff offered to get cotton seed cake supplied at Ahmadabad, defendant who accepted the offer at Khamgaon under an oral contract dated on July 22, 1959 negotiated between the parties by conversation on long distance telephone. On defendant failure to supply the requisite goods. Plaintiff sued them at Ahmadabad because the defendant had offered to sell cotton seed cake which was accepted by the plaintiff at Ahmadabad and also the defendant were bound under the contract to supply the goods at Ahmadabad and the payment were to be received through a bank of Ahmadabad. But the defendant contended that the plaintiff has communicated by telephone offered to purchase cotton seed cake and he accepted the offer at Khamgaon, price was also to be paid at Khamgaon and so no part of the cause of action for the suit had arisen within the territorial jurisdiction of the city civil court Ahmadabad.

2.2. ISSUES RAISED UNDER THE CASE

• Whether an offer made from one place which requires that it be concluded in some other third place satisfies the requirements of contract law.

• Whether the offer is accepted, which is made through

v. Miles Far East Corporation (1955) 2 Q.B.D. 327, held that a contract made by telephone is complete only where the acceptance is heard by the proposer because generally an acceptance must be notified to the proposer to make a binding contract and the contract emerges at the place where the acceptance is received and not at the place where it is spoken into the telephone. In so deciding, the court of Appeal did not apply the rule obtaining in respect of contracts by correspondence or telegrams, namely, that acceptance is complete as soon as a letter of acceptance is put into the post box or a telegram is handed in for dispatch, and the place of acceptance is also the place where the contract is