Harvey v. Facey
[1893] A.C. 552 (P.C.) (appeal from Jamaica)
Three telegrams, a lowest price, and a buyer who answered a question nobody asked
- In one lineEn una línea
- A telegram stating the lowest price for property answers a price inquiry and is not an offer to sell at that price.Un telegrama que indica el precio más bajo de una propiedad responde a una pregunta de precio y no es una oferta de venta a ese precio.
- RuleRegla
- A statement of the lowest price at which the owner would sell, made in reply to an inquiry, is not an offer; the inquirer's purported acceptance is itself an offer that requires the owner's acceptance.
- Why this case is herePor qué está aquí este caso
- Paired with Owen on Sept. 8 (from the professor's own handouts): answering only the second of two questions, the price, is not an offer to sell. It trains the habit of reading each communication separately and asking what exactly it commits to.
- Procedural posturePostura procesal
- Buyers sued for specific performance of an alleged contract by telegram; the Jamaican trial court dismissed, the Court of Appeal reversed, and the Privy Council restored the dismissal.
Facts
Harvey telegraphed Facey, the owner of a property called Bumper Hall Pen: will you sell us Bumper Hall Pen? Telegraph lowest cash price. Facey replied: lowest price for Bumper Hall Pen £900. Harvey telegraphed back that they agreed to buy for £900 and asked for the title deed. Facey did not answer.
Procedural posture
Harvey sued for specific performance. The trial court dismissed; the Court of Appeal of Jamaica found a contract; the Privy Council reversed and dismissed.
Issue
Whether Facey’s telegram stating the lowest price was an offer that Harvey’s reply accepted.
Holding
No. Facey answered only the question about price, not the question whether he would sell; the final telegram was an offer by Harvey that Facey never accepted.
Reasoning
The Privy Council read the exchange question by question. The first telegram asked two things: willingness to sell and lowest price. The reply addressed price alone, and a statement of price is not a promise to sell at that price. Harvey’s third telegram could therefore only be an offer, and silence did not accept it.
Rule (own words)
Answering how much is not the same as saying yes. Match each reply to the question it answers before calling anything an offer.
What-ifs
- Facey’s reply: I will sell Bumper Hall Pen for £900 cash. Offer; Harvey’s telegram accepts.
- Facey’s reply quoted the price and added: reply by Friday. Closer to an offer, because a deadline suggests a commitment awaiting acceptance.
- Facey answered Harvey’s third telegram with yes. Contract formed at that point.
Likely follow-upsRepreguntas probables
The buyers asked two questions. Which did the owner answer?
Why do price quotations get this treatment?
Say the answer out loud before revealing each part. Rate yourself honestly; the case comes back sooner when you miss.Di la respuesta en voz alta antes de revelar cada parte. Califícate con honestidad; el caso vuelve antes si fallas.
Panic kit: “Could you repeat the question, please?” · “Let me make sure I have the facts right: …” · “I'm not certain, but I'd argue … because …”Kit de pánico: “Could you repeat the question, please?” · “Let me make sure I have the facts right: …” · “I'm not certain, but I'd argue … because …”