Felthouse v Bindley [1862]

Uncle offered to buy nephew’s horse for a
certain price –
‘If I hear no more I will consider the
horse is mine [at this price]’
Nephew’s auctioneer sold horse to another.
Nephew told uncle he had sold horse to
uncle but it had been sold to another by accident.
Court held uncle had no right to impose
condition that nephew wrote to repudiate offer.
Stood as open offer.
Uncle had no property in horse when it was
sold.

Even if view nephew’s
letter as memorandum of bargain complete before auction, 3rd party cannot
be bound.