OCR A2 Law - The Law of Contract - Formation of a Contract - Offer (5)

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  • Created by: Majid
  • Created on: 14-03-13 13:19

Formation of a Contract - Offer (5)

5. Tenders:Tenders have also been recognised to amounting to ITT's, where businesse's responses amount to an offer and the company can refer to all and accept/reject whichever they please. Problems can arise where Tenders are put out for  indefinite quantities . In the case of "GNR v Witham", GNR tendered for an indefinite quantity of goods. Witham's reply was an offer; but each order amounted to acceptance there are Witham was in breach of contract for not supplying an order made. AO2: This seems to be a fair principle given that a valid offer existed from Witham which wasn't validly revoked. This doesn't offer protection to the seller, but should they require protection they can withdraw their offer before acceptance takes place. Two further cases in this area of Law are the principles laid in "The Harvela", where it was stated the promise to sell to the lowest tenderer is binding and in the case of "Blackpool Fylde v Blackpool Borough Council", parties must consider all tenderers when they're submitted in a given time period. Any contracts made by distance selling or over the internet are regulated via 2 EU regs. The first is "The consumer protection regulations". This states that a customer can return their goods within 7 days. The service provider should show the price;description;delivery details. This applies to all contracts made via phone, fax, internet, mail order and TV shopping. The 2nd EU regulation is "The E-Commerce regulations". This states that service providers must always acknowledge a customers order without undue delay. In the "Kodak Case", It stated that internet items are ITT's and a customer's order amounts to an offer. The automatic email is NOT acceptance. Acceptance VALID when GOODS ARE DISPATCHED/2nd email received.  Final AO2: The Law on ITT's are practical and have as illustrated above, protected the seller allowing them to not form binding contracts at a wrong price, If they were so labelled. Further reinforcing, the sellers freedom to accept or rejects offers for goods, reiterating and upholding the freedom of contract.

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