Harvey v Facey

Ratio Decidendi

Facts

Harvey telegraphed Facey: 'Will you sell us Bumper Hall Pen? Telegraph lowest cash price.' Facey replied: 'Lowest price for Bumper Hall Pen £900.' Harvey telegraphed: 'We agree to buy Bumper Hall Pen for £900. Please send us your title deed.'

Judgment Summary

The Privy Council held that there was no contract between the parties. Analysing the three telegrams, it held that Harvey's first telegram asked two questions (whether Facey would sell, and the lowest price); Facey's reply answered only the second, stating the lowest price he would accept if he sold; and Harvey's third telegram, purporting to accept, was in truth itself the first offer. Facey's statement of his lowest price was merely a response to a request for information and did not amount to an offer to sell, because it contained no indication of any willingness to be bound to sell at that price to Harvey. As there had been no offer by Facey capable of acceptance, no contract came into existence, and Facey was under no obligation to sell Bumper Hall Pen. The case is a leading illustration of the distinction between a statement of price (a mere supply of information) and an offer capable of acceptance.

Key Quotes

Subsequent Treatment