This case was about the purchase of an insurance policy by a broker. Robert Hunter and Company, in Saltcoats, asked James Hamilton, an insurance broker in Glasgow, to procure an insurance policy for a ship sailing to the Firth of Clyde. Hunter and Co. specified that the policy should not cost more than eight guineas per cent. However, Hamilton was unable to find insurance at this price, so he procured a policy at nine guineas per cent, paying the difference himself. He then wrote Hunter and Co. to inform them of the action he had taken. In the letter, Hamilton stated that if Hunter and Co. did not approve of the policy, they could have it vacated by sending a return letter "in course of post." Hunter and Co. wrote back two days later to reject the policy; in the meantime, the ship in question had arrived safely. Hamilton sued for payment of the premium. In response, Hunter and Co. argued that their rejection of the policy was valid.

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