Falck v Williams (New South Wales) | [1900] AC 176

Material Facts:

Falck and Williams transacted through a middleman, Buch. Communication between Buch and Williams was through telegraphic code. At a point, a message from Falck requesting carriage of copra in Fiji for delivery in Europe was understood by Williams as a proposal for carriage of shale from Sydney to Barcelona to a misunderstanding of the telegraphic code. Falck sued William for breach of contract.

Issues:

Whether there was a binding contract between the parties.

Holding:

There was no contract between the parties.

Ratio Decidendi:

That since the acceptance by Williams as he meant it to be understood had no connection with or reference to the proposal Buch intended to make and thought he was making, the parties cannot be said to be in agreement and there was no contract.