Contractual Law

[lucylou273]

I really need help with this essay question - can anyone help me?

Buildright Ltd, a firm of building contractors, has submitted a tender to undertake an extention to an existing school. They have posted their tender (in the sum of �1.45 million) on the 25 september 206. West brook county council review the six tenders that they have received and decide that build right should be awarded the tender. They post a letter accepting Buildright's tender on 2 October 20. On the 3 October 2006 Buildright during an internal review, realise that they have mispriced the tender documents. Before receiving West Brook county councils acceptance letter they ring the council to withdraw the tender.
The councils chief quantity surveyor tells them it's too late, their tender has been accepted.
Advise buildright on the situation. Include in your advise details of the legal principles involved and authorities for the the principles you rely on.

Can you help me please?

Lucy x

[dzug]

Can't help with the small print, but the contract became binding when the council posted their acceptance - ie on 2 October.

The only get out the company has is if their tender were so low as to be obviously a mistake

[Gmcd01]

Just note that a tender is an invitation to treat, not an offer:
Spencer v Harding (1870) LR 5 CP 561
Reveocation of the tender is received too late; acceptance of the offer (i.e when the legal contract forms) happened before revocation as it came into effect when the letter was put into the letterbox and NOT when received:
Adams v Lindsell (1818) 1 B & Ald 681 (the 'Postal Rule')
Note that the person in the council posting the acceptance must be authorised to do it:
Powell v Lee (1908) KBD 99 LT 284
Show that revocation could have been made by any means (Even if it isn't valid, display your knowledge):
Dickenson v Dodds (1896) 2 Ch D 463
Note that as no method for acceptance has been requested (e.g by fax) then posting a letter will indeed count as acceptance:
Domb v Isoz [1980] 2 WLR 565
I'll agree with dzug's point, but I can't immediately remember any case law supporting it. Try Lexis Nexis. Hope this helps!

[Gmcd01]

Oh, and it isn't an essay question, thats a problem question, so adjust your writing style accordingly.

[Peter Pedant]

Only just got this whilst doing Riyads non employment option.

The case they cant put their finger on is... 1925
the contractor gave the postman the letter and it was held not to have been posted. Post rule is connected with retraction and when you post it you cannot call it back.

Booth Hall Children's Hospital had an internal post box with an enamelled notice on it - "this is not post box and nothing can be deemed posted if you whack it in." - because the porter had a key. and I used to think of the case every time I passed. If I told anyone else they just looked as tho I was completely and utterly crazy.....

and Good Luck