which are known as standing offers. A tender is selected and then on each
occasion when an order is placed this is an acceptance, forming a separate
contract. This arose in the following case.
A sole supplier clause is where the person inviting tenders agrees to take
all requirements for particular goods or services from the tenderer. There is
no obligation to place an order, but if an order is placed, it must be with the
tenderer. The reason for being restricted in this way is usually financial, for
example where there is an agreement to order from a particular supplier in
return for a price reduction.
Contracts for the sale of land
The sale of land generally is dealt with in the Law of Property Act 1925.
However, much of this law involves the ordinary law of contract, and apart
from statutory requirements, the courts will always be wary of reading into
a situation any premature intention to be bound by the parties. This is
probably due to the expense involved and the importance of the transaction.
Often negotiations have been held to be simply supplying information
about a possible contract (still to be negotiated).
Offer and acceptance 35Great Northern Rail Co v Witham (1873)
Witham supplied coal to the rail company, in quantities and at times as
required by the storemaster. It was held that Witham’s tender was a
standing offer, each delivery of coal formed a separate contract, and if
Witham wanted to revoke the standing offer he could do so, providing
it was before the next order was placed. If an order had been placed he
was under an obligation to supply at the stated rate. While under the
agreement, the tenderer must work or supply, as agreed, whenever
required, but cannot insist on any orders at all.Try to find some examples of invitation to tender from your local
newspaper’s classified section.Harvey v Facey (1893)
An enquiry was made as follows, ‘Will you sell us Bumper Hall Pen?
Telegraph lowest cash price, reply paid.’ The reply was, ‘Lowest price
for Bumper Hall Pen £900.’ The buyer then tried to accept, but the
communications were held not to form an offer and acceptance, but
merely to be preparatory negotiations.