Philp & Co. v. Knoblauch [1907] ScotLR 666 (31 May 1907)

Philp & Co. v. Knoblauch [1907] ScotLR 666 (31 May 1907)

The defender's letter of 28 December 1905 was a definite offer to sell 100 tons of Plate linseed at a specified price on usual Plate terms, and the pursuers' telegram and subsequent letter constituted an unqualified acceptance, thereby concluding a binding contract. The absence of explicit reference to 'usual Plate terms' in the telegram did not prevent contract formation, as those terms were implied and confirmed in the subsequent letter.

Citation
[1907] ScotLR 666
Parties
Pursuer: Alexander Philp & Company and Alexander Philp; Defender: Hugo Knoblauch
Jurisdiction
Scotland
Judgment Date
31 May 1907
Procedural Posture
Civil / Appeal (reclaiming Motion) From Lord Ordinary to Inner House, Second Division
Outcome
interlocutor of Lord Ordinary recalled; defender's first and third pleas-in-law repelled; cause remitted to Lord Ordinary to proceed
Legal Topics
Offer and Acceptance, Formation of Contract, Commercial Contracts, Interpretation of Correspondence
Contract Law Offer and Acceptance Formation of Contract Commercial Contracts Interpretation of Correspondence

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Parties

Alexander Philp & Company and Alexander Philp

Pursuer

Hugo Knoblauch

Defender

Procedural Posture

Civil / Appeal (reclaiming Motion) From Lord Ordinary to Inner House, Second Division

Legal Issues

  1. 1 Whether the defender's letter of 28 December 1905 constituted a firm offer to sell 100 tons of Plate linseed at a specified price.
  2. 2 Whether the pursuers' telegram of 29 December 1905 constituted an acceptance sufficient to conclude a contract.
  3. 3 Whether the absence of explicit reference to 'usual Plate terms' in the telegram prevented contract formation.

Ratio Decidendi

The defender's letter of 28 December 1905 was a definite offer to sell 100 tons of Plate linseed at a specified price on usual Plate terms, and the pursuers' telegram and subsequent letter constituted an unqualified acceptance, thereby concluding a binding contract. The absence of explicit reference to 'usual Plate terms' in the telegram did not prevent contract formation, as those terms were implied and confirmed in the subsequent letter.

Court Disposition

interlocutor of Lord Ordinary recalled; defender's first and third pleas-in-law repelled; cause remitted to Lord Ordinary to proceed

Orders

  • Recall of Lord Ordinary's interlocutor assoilzieing the defender.
  • Repel defender's first and third pleas-in-law.