Court case[1955] 2 QB 327

Entores, a London company, made an offer by telex to the Dutch agents of the defendant, an American corporation, for the purchase of copper cathodes. The agents accepted by telex sent from Amsterdam and received on the plaintiff's machine in London. Entores wished to sue for breach in England and needed leave to serve the writ out of the jurisdiction, which depended on the contract having been made in England.

The Court of Appeal held that the contract was made in London. Denning LJ explained that the postal rule is an exception confined to non-instantaneous communications. Where the parties are in each other's presence, or speak by telephone or telex, the acceptance must actually reach the offeror; if the line goes dead the acceptor must repeat it. The contract is therefore complete when and where the acceptance is received.