Ramsgate Victoria Hotel v Montefiore (1866) LR 1 Ex 109

Material Facts:

The defendant, Mr Montefiore, offered to purchase shares in the claimant’s company. The claimant only responded and accepted the defendant’s offer after 6 months, at which time the value of the shares had fallen. The defendant refused to go through with the purchase even though he had not withdrawn the offer.

Issues:

1. Whether or not the offer from Montefiore was still available for acceptance six months after it was made.

Holding:

1. The offer was no longer open for acceptance after six months.

Ratio Decidendi:

The court ruled that a reasonable period of time had passed after the offer was made and could no longer be accepted. The court ruled that an offer must be accepted within a reasonable time for the acceptance to be valid. What constitutes reasonable time would depend on the case.