The Hannah Blumenthal [1983] 1 AC 854

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This case is concerned with the offer and acceptance on contract law

Facts of The Hannah Blumenthal [1983] 1 AC 854

There were two parties who wanted to settle their dispute outside of the court through arbitration. Both the parties agreed to it. After this agreement their was a delay of six years.

After six years the buyers contacted the sellers and wanted to fix the date of arbitration. Sellers argued that the buyers are not entitled to proceed with arbitration. As the sellers had invested the money somewhere else.

Issue:

Was there a valid contract formed between them to eliminate arbitration by silence or not?

Decision:

As first the Court of Appeal (COA) said that yes the arbitration was cancelled as the seller had invested the money somewhere else and he was in loss. And as six years passed and in such a long time the buyer didn’t ask for arbitration which concluded that he also wanted to cancel arbitration

The Buyer then appealed to the House of Lords(HOL). The HOL held that silence cannot amount to acceptance in any case , As the judges said that there was no express offer and acceptance between the parties to cancel the arbitration.

Hence the Buyer succeeded and Arbitration was not cancelled.

Important Point of The Hannah Blumenthal [1983] 1 AC 854

Hannah Bluementhal is an unusual case , there was no express communication , so the only way of sharing acceptance was to show reliance and loss.

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