Harvey v Facey ([1893] 3 App. Cas. 459)
Acceptance & “lowest price” — a simple, student-first explainer with timeline, IRAC, mnemonics, and FAQs.
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Table of Contents
Quick Summary
Harvey asked Facey by telegram to state the lowest price for “Bumper Hall Pen.” Facey replied “£900.” Harvey said he would buy it for £900. The court held: stating a lowest price is only information, not an offer. So there was no acceptance and no contract.
Issues
- Does quoting a lowest acceptable price amount to an offer?
- Could Harvey’s reply create a binding acceptance?
- Was specific performance available on these facts?
Rules
Lowest Price ≠ Offer
Giving a minimum price is not a definite offer. It is only information or an invitation to make an offer.
Offer + Acceptance
A contract needs a clear offer and a matching acceptance. Without a real offer, acceptance cannot occur.
Facts (Timeline)
Arguments
Appellant (Harvey)
- £900 message was an offer capable of acceptance.
- Our “we agree to buy” message was a valid acceptance.
- Specific performance should be ordered.
Respondent (Facey)
- Reply gave only the lowest price; no offer was made.
- Without an offer, there can be no acceptance.
- No enforceable contract; no specific performance.
Judgment
Held: For Facey. The £900 telegram was not an offer—only information. Therefore Harvey’s response could not be an acceptance. No contract existed.
Relief: No specific performance; claim failed.
Ratio Decidendi
Sharing a minimum price does not show an intention to be bound. Only a definite offer can be accepted. Without that, there is no agreement.
Why It Matters
- Clear boundary between price information and offer.
- Protects parties from being bound by preliminary talks.
- Essential precedent for message-based negotiations (letters, emails, chats).
Key Takeaways
- “Lowest price” is not an offer.
- No offer → no acceptance → no contract.
- Specific performance needs a binding agreement.
Mnemonic + 3-Step Hook
Mnemonic: “Price Said ≠ Promise Made.”
- Price Said: Lowest price is information.
- No Promise: No intention to be bound.
- No Contract: Without offer, acceptance fails.
IRAC Outline
Issue
Was Facey’s £900 message an offer capable of acceptance?
Rule
Lowest acceptable price is not an offer; acceptance requires a definite offer.
Application
Facey only stated a minimum figure; no intention to be bound; Harvey’s “acceptance” had no offer to accept.
Conclusion
No contract; claim for specific performance fails.
Glossary
- Offer
- A clear promise to be bound if accepted.
- Invitation to Offer
- A prompt to negotiate or to make an offer (e.g., price quotes).
- Acceptance
- Unqualified assent to the exact terms of a definite offer.
FAQs
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