Contract Law and Tender Procedures
Added on 2020-03-28
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Running Head: CONTRACT LAW 0
Contract Law
Contract Law
CONTRACT LAW 1
Introduction
Tender is an invitation to offer in which a corporation calls for bids from the prospective bidders.
The company selects the best option as per its requirement and accepts the offer made by the
bidder. In the present case, the NSW Department of Administrative Affairs invited tender from
independent contractors to increase the safety of its main office. The department made an
advertisement of tender and directed the parties for the online registration. The Alcatraz Security
Systems Pty Ltd submitted their tender by complying with the guidelines provided by the
department, although, the guidelines provided by the department to Alcatraz did not disclose all
the necessary information as per section 5. The department accepted the tender of Trident
Systems Pty Ltd, which quoted its price at 50 percent more than Alcatraz. Frank discovered that
head of the department leaked the details of his tender to Trident before they submitted their
tender.
Introduction
Tender is an invitation to offer in which a corporation calls for bids from the prospective bidders.
The company selects the best option as per its requirement and accepts the offer made by the
bidder. In the present case, the NSW Department of Administrative Affairs invited tender from
independent contractors to increase the safety of its main office. The department made an
advertisement of tender and directed the parties for the online registration. The Alcatraz Security
Systems Pty Ltd submitted their tender by complying with the guidelines provided by the
department, although, the guidelines provided by the department to Alcatraz did not disclose all
the necessary information as per section 5. The department accepted the tender of Trident
Systems Pty Ltd, which quoted its price at 50 percent more than Alcatraz. Frank discovered that
head of the department leaked the details of his tender to Trident before they submitted their
tender.
CONTRACT LAW 2
Issues
The issues of this case include, whether the NSW Department of Administrative Affairs is under
an obligation to admit the tender of Alcatraz. Another issue is that if the department is not
obligated then whether Alcatraz has any contractual right.
Rule
The common law of Australia guides the contractual behavior between the parties to a contract.
According to the common law of the contract, offer and acceptance are the essential elements for
establishing a valid contract between two parties. One person is required to give an offer which
another party must accept without any change in requirements1. Further, the common law
distinguishes between an offer for contract and an offer which is merely a request to the party, in
order to create offers to do negotiations related to the contract. In Spencer v Harding Law case2,
the court held that the advertisement was an invitation to contract and the tender was a proposal,
the defendant has right to admit such tender or not. In the case of Pharmaceutical Society of
Great Britain v Boots Cash Chemists (Southern) Ltd3, the court provided that the price tag
displaying on a dress in a shop is considered an invitation to offer, not an offer for a contract4. If
a customer approaches the shopkeeper to buy such item, then it cannot be considered as an
acceptance rather it is an offer which may or may not be accepted by the shopkeeper. Further, in
the case of Carlill v Carbolic Smoke Ball Co5, the court held that a general offer is a valid offer if
any person accepts such offer then the person automatically enters into the legally binding
1Elisabeth Peden. "Incorporating terms of good faith in contract law in Australia." Sydney L. Rev. 23 (2001): 222.
2Spencer v Harding Law (1870) Rep. 5 C. P. 561
3Pharmaceutical Society of Great Britain v Boots Cash Chemists (Southern) Ltd (1953) EWCA Civ 6
4 Guenter Heinz Treitel. The law of contract. Sweet & maxwell, 2003.
5Carlill v Carbolic Smoke Ball Co (1893) 1 QB 256; [1892] EWCA Civ 1
Issues
The issues of this case include, whether the NSW Department of Administrative Affairs is under
an obligation to admit the tender of Alcatraz. Another issue is that if the department is not
obligated then whether Alcatraz has any contractual right.
Rule
The common law of Australia guides the contractual behavior between the parties to a contract.
According to the common law of the contract, offer and acceptance are the essential elements for
establishing a valid contract between two parties. One person is required to give an offer which
another party must accept without any change in requirements1. Further, the common law
distinguishes between an offer for contract and an offer which is merely a request to the party, in
order to create offers to do negotiations related to the contract. In Spencer v Harding Law case2,
the court held that the advertisement was an invitation to contract and the tender was a proposal,
the defendant has right to admit such tender or not. In the case of Pharmaceutical Society of
Great Britain v Boots Cash Chemists (Southern) Ltd3, the court provided that the price tag
displaying on a dress in a shop is considered an invitation to offer, not an offer for a contract4. If
a customer approaches the shopkeeper to buy such item, then it cannot be considered as an
acceptance rather it is an offer which may or may not be accepted by the shopkeeper. Further, in
the case of Carlill v Carbolic Smoke Ball Co5, the court held that a general offer is a valid offer if
any person accepts such offer then the person automatically enters into the legally binding
1Elisabeth Peden. "Incorporating terms of good faith in contract law in Australia." Sydney L. Rev. 23 (2001): 222.
2Spencer v Harding Law (1870) Rep. 5 C. P. 561
3Pharmaceutical Society of Great Britain v Boots Cash Chemists (Southern) Ltd (1953) EWCA Civ 6
4 Guenter Heinz Treitel. The law of contract. Sweet & maxwell, 2003.
5Carlill v Carbolic Smoke Ball Co (1893) 1 QB 256; [1892] EWCA Civ 1
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