MR MACPHERSON: We will give that undertaking to remove it as soon as a decision is made as to a question of an appeal to the House of Lords. (Q) And to whom did you speak there? Now in this case, the “notice in writing” was to be one “to the Intending Vendor”. privacy policy. It was accepted that Holwell posted a letter to Hughes on 14 April 1972 but this was not received. ____________________Mr W.A. When the defendant’s solicitors received the plaintiffs’ solicitors’ letter dated 14th April, set out at page 758 of the report below, they communicated by telephone with the defendant. The defendant’s evidence was as follows: “(Q) Did you then, as a result of that, ring Messrs Bulcraig & Davis? Lastly, the rule is easily displaced, for example, it may be excluded by the offeror either expressly or impliedly. Is a stockbroker who is holding shares to the orders of his client liable in damages because he did not sell in a falling market in accordance with the instructions in a letter which was posted but never received? There is, I consider, a further or perhaps parallel ground for exclusion of acceptance by act of posting in this case, which arises under section 196 of the Law of Property Act, 1925, and in particular subsection (5) which was new in property legislation. In essence, the principle states that, for a contract to be formed, there must have been an offer by one party (the offeror) which must have been accepted by the other party (the offeree). The option was to be exercised ‘by notice in writing to’ the grantor within the stipulated time. The relevant language here is, “The said option shall be exercised by notice in writing to the Intending Vendor …”. The material parts of the option clause are as follows: “The said option shall be exercisable by notice in writing to the Intending Vendor at any time within six months from the date hereof …”. Like Student Law Notes. My recollection is that he said ‘a letter’ but later I understood that what was meant was a copy. Holwell Securities Ltd v Hughes [1974] ‘Post Office’ by David Gilmour Blythe. The two reasons are: It is an important point of construction and principle and, potentially certainly, there is a large amount of money involved. Nor, as was once suggested, are such cases limited to cases in which the offer has been made by post. 1:04. The instrument might have said “The offer constituted by this option may be accepted in writing within six months”: in which case no doubt the posting would have sufficed to form the contract. It was also suggested by the court that the postal rule would not be used where it … It extends the other provisions of the section to “notices required to be served by any instrument affecting property”. CA dismissed P’s claim for specific action on the grounds that the clause required that notice be given, and that in this case notice had NOT been given (even though this was through no fault of P). Does the rule apply in all cases where one party makes an offer which both he and the person with whom he was dealing must have expected the post to be used as a means of accepting it? When the provisions of section 196(4) are read into the agreement, as they have to be, the only reasonable inference is that the parties intended that the vendor should be fixed with actual knowledge of the exercise of the option save in the circumstances envisaged in the subsection. *156 APPEAL from Templeman W.L.R.757. Holwell Securities Ltd v Hughes – Case Summary. Leave to appeal to the House of Lords refused. This follows from the use of the phrase “any notice … shall also be sufficiently served …”. Holwell Securities Ltd v Hughes (1974) On the 19 October 1971 Hughes granted an option to Holwell Securities to purchase a certain property for £45,000. IN THE SUPREME COURT OF JUDICATURE COURT OF APPEAL CIVIL DIVISION On appeal from Order of Mr Justice Templeman. Holwell's lawyer sent a copy of the letter to Hughes by mail, but it was never delivered. Holwell Securities v Hughes [1974] 1 All ER 161. For suppose an exercise of the option by a registered letter which went astray, and suppose it to have been posted on the last option day: this section would deem the notice to have been given too late. , and, as was once suggested, are of course, nothing in option... Agreement, which was in writing had to be one “ to offeror! ] the postal rule applied and if there were any exceptions holwell securities ltd v hughes this problem be... 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