Tenders Flashcards
What are tenders
Companies inviting bids from suppliers
Eg asking for best price for 50 chairs
What is invitation to treat in a tender?
The company inviting tenders / asking for the best price
What is the offer?
Every tender submitted by companies in an OFFER to be accepted or declined
When would a tender become a unilateral contract?
If the ad goes further to PROMISE to accept the highest/lowest offer
Committing to buy
Case for tenders
Spencer vs Harding
What happened between Sp vs Ha
Harding put out circular looking for buyers of stock
Spencer submitted highest bid
Not accepted
Court ruling in Sp vs Ha
Spencer tried to argue tender was unilateral offer
REJECTED
no wording in circular indicated a promise to accept tenders
They are an offer and can be rejected oi
What is a referential tender?
“I’ll pay you £1000 more than your highest tender”
State their price in relation to other tenders offered
Case for referential tenders
Harvella vs Royal Trust Canada
RTC role in case
They asked for a single bid for shares from each company
Promised to accept highest offer
Why did harvella bring action against RTC
Referential tenders
They bid £2.175 million for shares
But another co bid £2.1 million plus £101k in excess of highest bid
Harvella still technically subbed highest bid
In court
Harvella vs RTC
Referential tenders
RTC promised to sell to highest bidder
Contractually bound
Harvella entitled to damages
