Dickinson V Dodds
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''Dickinson v Dodds'' (1876) 2 Ch D 463 is an
English contract law English contract law is the body of law that regulates legally binding agreements in England and Wales. With its roots in the lex mercatoria and the activism of the judiciary during the industrial revolution, it shares a heritage with countries ...
case heard by the
Court of Appeal A court of appeals, also called a court of appeal, appellate court, appeal court, court of second instance or second instance court, is any court of law that is empowered to hear an appeal of a trial court or other lower tribunal. In much of t ...
,
Chancery Division The High Court of Justice in London, known properly as His Majesty's High Court of Justice in England, together with the Court of Appeal and the Crown Court, are the Senior Courts of England and Wales. Its name is abbreviated as EWHC (England ...
, which held that notification by a third party of an offer's withdrawal is effective just like a withdrawal by the person who made an offer. The significance of this case to many students of contract law is that a promise to keep an offer open (an option) is itself a contract which must have some consideration.


Facts

On Wednesday 10 June 1874, Mr Dodds delivered Mr Dickinson an offer to sell some houses for £800, an offer open until 9am on Friday 12 June. On Thursday afternoon, another man called Mr Berry told Mr Dickinson that the houses had already been sold to someone called Mr Allan (who was the second defendant). Mr Dickinson found Mr Dodds in the railway carriage at 7am on Friday, leaving
Darlington railway station Darlington railway station is on the East Coast Main Line in the United Kingdom, serving the town of Darlington, County Durham. It is north of and on the main line it is situated between to the south and to the north. Its three-letter st ...
, and gave his acceptance there. But Mr Dodds said it was too late. Mr Dickinson sued for
breach of contract Breach of contract is a legal cause of action and a type of civil wrong, in which a binding agreement or bargained-for exchange is not honored by one or more of the parties to the contract by non-performance or interference with the other party ...
.


Judgment

James LJ held that Mr Berry had conveyed notice of the withdrawal of the offer. After referring to the document of 10 June 1874 he said the following:
Mellish LJ Sir George Mellish, Privy Council of the United Kingdom, PC (19 December 1814 – 15 June 1877) was an English barrister, judge of the Court of Appeal in Chancery, and member of the Judicial Committee of the Privy Council. Early life Born at ...
agreed and said, Baggallay JA concurred.


Significance

Communication of the withdrawal of the offer can be made by any reliable third party. An option must have consideration to be binding.


See also

*
Contract A contract is a legally enforceable agreement between two or more parties that creates, defines, and governs mutual rights and obligations between them. A contract typically involves the transfer of goods, services, money, or a promise to tran ...
*
Offer and acceptance Offer and acceptance are generally recognised as essential requirements for the formation of a contract, and analysis of their operation is a traditional approach in contract law. The offer and acceptance formula, developed in the 19th century, id ...
*
Invitation to treat An invitation to treat (or invitation to bargain in the United States) is a concept within contract law which comes from the Latin phrase ''invitatio ad offerendum'', meaning "inviting an offer". According to Professor Andrew Burrows, an invitat ...


References

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External links


Text of case
at
Commonwealth Legal Information Institute A commonwealth is a traditional English term for a political community founded for the common good. Historically, it has been synonymous with " republic". The noun "commonwealth", meaning "public welfare, general good or advantage", dates from th ...
site
Article about the case from Contract Law Blog
English contract case law 1876 in case law Court of Appeal (England and Wales) cases 1876 in British law