CONTRACT LAW Problem question –

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Nuclear Supplies Ltd (‘Nuclear’), an English company with its head office in England, offered to
sell 1000 components to Bomb Corp (‘Bomb’), a company located in a different continent. Bomb
wishes to use the components to develop weapons for an undisclosed purpose. The offer was
sent by Zara, Managing Director of Nuclear, via an email to the office of Ed, Managing Director of
Bomb. An hour later Zara sent a revocation of the offer to the same email address. Both the offer
and the revocation of the offer reached Ed’s office out of office hours. The offer was brought to Ed’s
attention as soon as his office reopened the next morning. An hour later Ed emailed to Zara’s office
his acceptance which arrived (outside Nuclear’s office hours) at 1 am (BST) on 5th June 2014.
Owing to administrative inefficiency in Bomb’s office, Zara’s emailed revocation was not brought to
Ed’s attention until an hour after he had emailed his acceptance, that is at
about 2 am (BST) 5th June 2014.
Is there a binding contract between Nuclear and Bomb? Use relevant case law in support of your
(For the purposes of the question, students may assume that the parties agree to be bound by
English Law).
– Referenced with OSCOLA
– 12 sources; meaning 12 cases
Elements to consider:
• Intention to create legal relations
• An offer
• Acceptance (postal/receipt rule)
• A counter-offer
• request for information
• Consideration
You may refer to these cases:
1. Butler Machine Tool v Ex-Cell-O Corporation [1979]
2. Simpkins v Pays File (1955)
3. Carlill v Carbolic Smoke Ball [1892]
4. Hyde v Wrench (1818)
5. Thomas v Thomas (1842)
6. White v Bluett (1853)
7. Lampleigh v Braithwaite (1615)
8. The Wagon Mound (1967)
9. Wilsher v Essex AHA (1986)
10. The Oropesa (1943)
11. Donahue vv Stevenson (1952)
12. Mulcshy v Ministry of Defence (1996)
13. Bolton v Stone (1951)
14. Colins v Godefroy (1831)
15. D.C.Buliders v Rees (1865)

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