FACTS
Paul Felthouse discussed the sale of his horse with his nephew, John Felthouse. Following their conversation, Paul sent a letter stating that if he didn't receive further communication from John regarding the horse, he would assume the order was accepted, and he would become the owner. Without responding to this letter, John, who was occupied at auctions, informed the auctioneer, Mr. Bindley, not to sell the horse. Despite this, the horse was mistakenly sold to another buyer.
ISSUES
Whether silence or a failure to reject an offer amount to acceptance?
JUDGMENT
The court ruled that there was no contract for the horse between the complainant and his nephew. The absence of a clear acceptance and the principle that silence does not constitute acceptance were emphasized. It was highlighted that an obligation cannot be imposed without proper communication of acceptance. Despite the nephew's initial intention to sell the horse to the complainant, there was no formal contract of sale. Therefore, the nephew's failure to respond to the complainant did not signify acceptance of the offer.
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