Paul Felthouse discussed the purchase of his horse with his nephew, John Felthouse.
The horse is mine!!
Following their discussion, the uncle responded by a letter, stating that if he did not hear from his nephew regarding the horse, he would consider that he owns the horse.
CONTRACT
His nephew did not respond to the letter because he was too busy at auctions. Mr Bindley, the defendant, ran the auctions, and the nephew advised him not to sell the horse. However, he ended up selling the horse to someone else by accident.
To prove that there was a valid contract, Paul Felthouse sued Mr Bindley in the tort of conversion. He needed to show that the horse was his property.
Mr Bindley claimed there was no genuine contract for the horse since the nephew had not indicated his approval of the Paul Felthouse's offer.
Because there was no acceptance of the contract, the court held that Paul Felthouse did not have possession of the horse since silence did not amout to acceptance. Despite Paul Felthouse apparent interest in completing the deal, the intention was not communicated until after the horse had been sold.