Stephens v Myers

Case Name:

Stephens v Myers (1830)

Court:

Court of Common Pleas, England

Facts of the Case:

The defendant, Myers, was in a meeting and intended to propose a contract.

He made a preliminary statement of intention to enter into a contract but did not actually make a formal offer.

Stephens, the plaintiff, acted upon the statement and assumed a contract was being made.

Before Myers could make a definite offer, he refused to proceed further.

The dispute arose because the plaintiff claimed he was entitled to enforce the contract based on Myers’ preliminary statement.

Issue:

Whether a statement of intention to enter into a contract constitutes a legal offer that can be accepted.

Can the plaintiff enforce a contract if only preliminary negotiations or statements of intention were made?

Judgment:

The court held that Myers’ statement was not a legal offer, but merely an intention to negotiate or propose in the future.

Therefore, Stephens could not enforce a contract because there was no completed offer.

The statement did not create any binding legal obligation.

Legal Principle:

Intention vs. Offer:

A mere statement of intention to do something is not an offer.

A valid contract requires a definite offer and acceptance.

Preliminary Negotiations:

Preliminary discussions or negotiations are not binding.

Only when a clear and definite offer is made and accepted does a contract arise.

Case Citation Principle:

This case is often cited to distinguish pre-contractual statements from legally enforceable offers.

Importance / Significance:

Stephens v Myers is a leading case in contract law for understanding offers and invitations to treat.

It establishes that parties are not bound by statements of intention unless there is a clear offer capable of being accepted.

This case helps avoid premature claims in situations where negotiations are ongoing.

Summary in Simple Terms:

Myers said he intended to make a contract, but did not make a formal offer.

Stephens acted on that intention.

Court: No contract existed. Only a clear offer + acceptance creates a binding contract.

LEAVE A COMMENT

0 comments