Brinkibon v stahag stahl. Brinkibon Ltd v Stahag Stahl  2 AC 34 2022-10-18
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Brinkibon v Stahag Stahl is a legal case that was decided by the European Court of Justice (ECJ) in 1983. The case involved a dispute between two companies, Brinkibon Ltd and Stahag Stahl GmbH, over a contract for the sale of steel.
At the heart of the dispute was the question of whether the contract between the two companies was governed by English law or Austrian law. Brinkibon, a British company, argued that the contract was governed by English law, while Stahag, an Austrian company, argued that it was governed by Austrian law.
The ECJ ultimately ruled in favor of Brinkibon, finding that the contract was indeed governed by English law. In reaching this decision, the ECJ considered several factors, including the fact that the contract was formed in England and that the parties had designated English law as the governing law in the contract.
The decision in Brinkibon v Stahag Stahl was significant for a number of reasons. First and foremost, it established that parties to a contract can choose the law that will govern their agreement, even if the contract is to be performed in a different jurisdiction. This principle, known as "party autonomy," allows businesses to have greater certainty and predictability in their commercial transactions.
In addition, the case also helped to clarify the role of the ECJ in matters of cross-border contracts and the application of different national laws. Prior to the decision in Brinkibon v Stahag Stahl, there was some uncertainty as to whether the ECJ had the authority to rule on issues of private international law, such as the choice of governing law in a contract. The decision in this case helped to establish the ECJ's jurisdiction in these matters and provided a framework for future cases involving cross-border contracts.
Overall, the decision in Brinkibon v Stahag Stahl has had a lasting impact on the way that contracts are formed and governed in the European Union. It has given businesses greater certainty and predictability in their commercial transactions and has clarified the role of the ECJ in matters of private international law.
Brinkibon Ltd. v Stahag Stahl und Stahlwarenhandelsgesellschaft mbH
The structure of the agreement was that the developer would obtain planning permission and, under. The message may not reach, or be intended to reach, the designated recipient immediately: messages may be sent out of office hours, or at night, with the intention, or on the assumption that they will be read at a later time. Lord Fraser of Tullybelton. Brinkibon Ltd later wanted to sue Stahag Stahl for breach of contract in England, but they could only do this if the contract was formed in England. .
Brinkibon Ltd v Stahag Stahl und Stahlwarenhandelsgesellschaft mbH
The court reaffirmed the Entores v Miles Far East Co decision, which stated that the postal rule did not apply to instantaneous communication forms, which include Telex. I agree entirely with these observations. And many other variations may occur. No universal rule can cover all such cases; they must be resolved by reference to the intentions of the parties, by sound business practice and in some cases by a judgement where the risks should lie. The sellers did not delivery, and the buyers wanted to sue for The Lords stated that it was inappropriate to create a universal rule in all instantaneous communications cases; exceptions might exist.
There may be some error or default at the recipient's end which prevents receipt at the time contemplated and believed in by the sender. The message may not reach, or be intended to reach, the designated recipient immediately: messages may be sent out of office hours, or at night, with the intention, or on the assumption that they will be read at a later time. The House of Lords followed the Entores Ltd case and held that the contract was formed where the acceptance was received, in this case Austria. Brinkibon, alleging breach, wanted to serve the respondent with a writ claiming damages for breach of contract in England, but Stahag Stahl claimed they were not under British jurisdiction. The senders and recipients may not be the principals to the contemplated contract.
They may be servants or agents with limited authority. They may be servants or agents with limited authority. Unquestionably, as a general proposition, when an offer is made, it is necessary in order to make a binding contract, not only that it should be accepted, but that the acceptance should be notified. However, the court also noted that there was no universal rule. However, although the postal rule does not apply to instantaneous forms of communication, there is no 'universal rule' with each case needing to be decided by reference to the intention of the parties. Consequently, if the postal rule applied in this case the contract would have been concluded in England where sent and English law would apply; if it did not apply then the contract would have been concluded where the acceptance was received — Vienna. I have reached the opinion that, on balance, an acceptance sent by telex directly from the acceptor's office to the offeror 's office should be treated as if it were an instantaneous communication between principals, like a telephone conversation.
Again the issue was whether the English company could serve a writ out of jurisdiction. Brinkibon wanted to sue Stahag and in order to have leave to serve out of the jurisdiction, had to establish that the contract had been formed in England. The claimants sent their acceptance of the offer by Telex, which was to the defendants in Vienna. Lord Wilberforce elaborated on these factors stating that the machines facilitating the communication could be operated by third parties potentially causing error, or the messages may be sent or received out of office hours. For these reasons I think it is right that in the ordinary simple case, such as I take this to be, the general rule and not the postal rule should apply.
Brinkibon Ltd v Stahag Stahl und Stahlwarenhandelsgesellschaft mbH
Issue: Does the postal rule apply to instantaneous communication? Contract law: cases and materials. He noted that the postal rule is an exception to the general rule that acceptance must be actually communicated to the offeror. Postal rule- Adam v Lindsell, acceptance is complete as it is posted. Brinkibon sent their acceptance to a Stahag offer by Telex to Vienna. They may be servants or agents with limited authority. Another issue in the appeal was when the formation of a contract would be when.
Brinkibon Ltd v Stahag Stahl und Stahlwarenhandelsgesellschaft mbH: HL 1982
Facts The claimant Brinkibon Ltd was a company based in London. Lord Brandon said the following. . The complainants sent their acceptance of the offer by Telex, which was to the defendants in Vienna. They were buying steel from the defendants, Stahag Stahl, who were sellers based in Austria. . The answer to this question depended on whether the postal rule applied.
B, alleging breach, wanted to serve S with a writ claiming damages for breach of contract in London, but S claimed they were not under British Jurisdiction. In the case of instantaneous communication, which included telex, the contract is normally formed in the jurisdiction where the acceptance is received. Facts The offeror, Brinkibon London, England wanted to sue the offeree, Stahag Vienna, Austria for breach of contract. Held: The claim for breach of contract by Brinkibon was dismissed. In all cases, the touchstone should be the objective intentions of the parties in the circumstances of the case. Otherwise, the case would be dealt with under Austrian law as desired by the defendants.
One reason is that the decision to that effect in Entores Ltd v Miles Far East Corp seems to have worked without leading to serious difficulty or complaint from the business community. Laryea, Lisa Spagnolo, Cambridge University Press. Lists of cited by and citing cases may be incomplete. . The postal rule provides an exception to the general rule at common law that acceptance occurs when and where received; where the postal rule exception applies acceptance occurs when and where the acceptance is sent. Held The court sided with Stahag Stahl and held that the contract was formed in Austria because acceptances sent by instantaneous communication methods are only effective from when they are received. Lord Brandon of Oakenbrook discussed the justification for the postal rule.