hear otherwise, he would assume that the horse was his. It was held that this
could not amount to a contract without some communication from the
nephew, as a contract cannot be imposed on a person in this way (even if
they are happy with it).
So, exactly what is needed to form a valid contract? The rest of this book
will address that issue, and will also look at ways in which courts deal with
problems that may arise once a contract is formed.
4 Contract law
Some aspects of Felthouse v Bindleyappear a little harsh. Do you think that
the outcome is justified? What if someone wrote to you offering to buy your
hi-fi, and stated that unless you let them know otherwise they would assume
that there was a contract between you? Should you be under an obligation
to reply?