## Facts

- Entores Ltd, based in London, offered to purchase 100 tons of copper cathodes from Miles Far East Corporation, based in Amsterdam.
- The offer and subsequent acceptance were communicated via Telex, an instantaneous messaging device.
- Miles Far East Corp sent its acceptance to Entores through Telex.
- A dispute arose when Miles Far East Corp failed to fulfil the contract, prompting Entores to sue for damages.
- The location of contract formation became critical in determining which jurisdiction’s laws would govern, as the contract could be deemed formed either in the Netherlands (acceptance sent) or in England (acceptance received).
- The main question revolved around whether acceptance was effective when sent (in Amsterdam) or when received (in London).

## Issues

1. Whether acceptance via instantaneous communication (such as Telex) is effective at the moment of sending or upon receipt by the offeror.
2. Whether the postal rule applies to communications conducted via instantaneous means.
3. How the determination of the time and place of acceptance affects the choice of governing legal jurisdiction.

## Decision

- The Court of Appeal held that the postal rule does not apply to instantaneous forms of communication like Telex.
- Acceptance is effective when, and where, it is received by the offeror.
- The contract between Entores and Miles Far East Corp was formed in London, making English law applicable.
- The court emphasized that, in instantaneous communications, acceptance must be successfully received and understood by the offeror for a contract to be formed.

## Legal Principles

- The postal rule, under which acceptance takes effect upon dispatch, does not extend to instantaneous communications.
- For methods like Telex, telephone, or similar technologies, acceptance is only valid upon the offeror’s actual receipt of the message.
- The rules for contract formation must reflect the nature of the communication medium, ensuring that contractual duties only arise when both parties are mutually aware of agreement.
- A clear distinction exists between non-instantaneous and instantaneous communication methods for the purpose of establishing offer and acceptance.

## Conclusion

Entores Ltd v Miles Far East Corporation [1955] 2 QB 327 established that in cases of instantaneous communication, acceptance is effective upon receipt by the offeror, not upon dispatch. This clear delineation rejected the application of the postal rule to modern communications and tied the location and timing of contract formation to the moment and place the acceptance is received, thereby determining applicable law and ensuring contract law remains responsive to technological changes.
