|Law of contracts|
Alice is the owner of the block of land in the region of the central coast and recently got her architect’s plan for developing that site for the child care facility approved by the local council. Alice sends a letter to four builders i.e Bazza, Cassy, Davo and Edna to tender for the job for the construction of a new building of child care facility. She knew the four builders as she had commercially developed the buildings in the past, so asked them to provide the tender. She writes a letter to all the four builders individually, with the attachment of a site and the list of the materials.
I will undertake and bind myself to accept the best tender that complies with these terms. Bazza quoted $300,000 for the completion of a job by 1 June, 2017. Cassy quoted $400,000 or $50,000 less than the lowest quoted price for the work which is to be finished by 1 June, 2017. Davo quoted $500,000 for the completion of work by 1 June, 2016 and further stated that I do not use any sub contractors all the trade people on the site will employed which personally choosen by me for their skills. Edna quoted $280,000 for the completion of the job by 1 June,2017 and posted her tender in the evening of 25 May,2015 which arrives at Alice’s premises the very next day. Alice chooses Cassy’s quotation by comparing the prices of all the three builders and nothing else she compared. Bazza had obtained quotes from various trades people. For the purpose of brokering, he got quotes from 5 bricklayers and told them he will quote the average of all 5 and one bricklayer agreed to do the job for a price below the cost of another four. In such circumstances, he offered lowest quotes. The bricklayer told him now that he cannot do the job at the original quoted price. Bazza thought if he contracted with Alice at his quoted price In the tender, he would not profit.
According to the Australian Law a quotation for the tender is just invitation to enter into a contract between the parties, i.e. one party who demands for the quotation and the other party who submits the quotation. According to the conditions of the contract under Australian law there must be an offer and acceptance. When both the parties agreed to do with the contract, the doctrine of promissory estoppels applies. The estoppels is that when one party promises other party to act upon any part then the party who made the promise will not be allowed to go behind the promise. According to the law in Australia the person cannot be allowed to change the original quoted price. The person giving quotation must use his skills and experiences at the time of quoting prices in the tender because after that the person is not allowed to change the original quoted price . According to the Australian law private sector and government agencies will invite tenders through the process specified by the Australian government known as tender process . It is important for the individuals and entities who invite tenders to understand the law which regulates the tender process. The services under the Australian law are exchanged by the medium of a contract. The important principle law, contract law is a contract is made where a reasonable offer made by one party and the same offer is accepted by the other party who are capable to contract. Another important principle is that there must be a common intention of both the parties to enter into a contract. Before entering into a contract, a government enterprise or the private sector requires to follow the law regulates the tender process. The First step for the tender process is to “issue a request for tender”. Request for tender is nothing but just a notice inviting contractors who satisfies the conditions to meet the requirements of the tender and other requested documents. (1) Persons interested in providing those services, submits a tender which are also known as bid , offer, quotaion etc. (2) The objective of tendering process is to locate a preferred supplier which results into a contractual relationship for the purpose of the supply of services. It is important to mention here that the tendering process continues to the contractual relationship. A request for tender, for the purpose of formation of contract is not an offer, it is just an invitation to enter into a contract or we can say that it is just a request to negotiate or an offer with a possibility of contract.
By considering all the facts and circumstances of the case, it is suggested that though there is no written contract between the bricklayer and Bazza. It is the settled law in Australia that the contract can be written or oral. Once the person promises to do act for other party then under the law he is not allowed to go behind the promise. Bazza can claim damages from the bricklayer even though his tender is not accepted. It is further suggested that if Alice had entered into a contract with anyone, she had to inform to others bidders as the ethics of tenders. She haad to inform to all the bidders i.e. the winning bidders and the rest of the bidders about the reason of acceptenace of bid to the winning bidder and the reason for not accepting the bids of rest of the bidders.
Ashley, Clarence D., ‘Conditions In Contract’ (1905) 14The Yale Law Journal C., J. W., ‘Contracts: Offer And Acceptance: Acceptance Conditioned By Letter Following Telegram: Acceptance By Unauthorized Means’ (1929) 18California Law Review ‘Contract. Offer. Invitation To Treat’ (1925) 25Columbia Law Review ‘Contract. Offer. Invitation To Treat’ (1925) 25Columbia Law Review Dowrick, F. E., ‘Invitees–Notice Of Unusual Dangers’ (1955) 18The Modern Law Review ‘Estoppel. Estoppel In Pais. Future Conduct As Basis Of Estoppel’ (1909) 22Harvard Law Review ‘Inviting Bids To Become A Preferred Supplier Does Not Violate Patents In Europe’ (2012) 31Biotechnology Law Report ‘Rights And Liabilities Under Option Contracts’ (1905) 18Harvard Law Review ‘TENDERING’ (1949) 25Australian Veterinary Journal WILLETT, CHRIS, ‘THE FUNCTIONS OF TRANSPARENCY IN REGULATING CONTRACT TERMS: UK AND AUSTRALIAN APPROACHES’ (2011) 60International and Comparative Law Quarterly
 Clarence D. Ashley, ‘Conditions In Contract’ (1905) 14The Yale Law Journal.  ‘Estoppel. Estoppel In Pais. Future Conduct As Basis Of Estoppel’ (1909) 22Harvard Law Review.  J. W. C., ‘Contracts: Offer And Acceptance: Acceptance Conditioned By Letter Following Telegram: Acceptance By Unauthorized Means’ (1929) 18California Law Review.  ‘Contract. Offer. Invitation To Treat’ (1925) 25Columbia Law Review.  ‘Inviting Bids To Become A Preferred Supplier Does Not Violate Patents In Europe’ (2012) 31Biotechnology Law Report.  CHRIS WILLETT, ‘THE FUNCTIONS OF TRANSPARENCY IN REGULATING CONTRACT TERMS: UK AND AUSTRALIAN APPROACHES’ (2011) 60International and Comparative Law Quarterly.
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