Legal Principle: A contract requires a proposal and an acceptance of the proposal. It is necessary to make a binding contract, not only that the proposal be accepted, but also that the acceptance is notified to the proposer. Factual Situation: F offered to buy his nephew’s horse for £30–15s, adding, ‘If I hear no more, I shall consider the horse as mine at £ 30–15s.’ The nephew did not reply, but told his auctioneer not to sell the horse, as it was sold to his uncle. But the auctioneer sold it by mistake to a third party. F sued for conversion of his property. Issue: What is the liability of nephew? Decision: