Contract and Agency Law
BUS201
Contract and Agency Law
Group Based Case Study
Bai Kailin Q0806156
Question 1
A tender is also considered as an offer. Tenders refers to a process by which one can seek prices and terms for a particular project (such as a construction job in this case) to be carried out under a contract. The sealed offers themselves, including company information, a project outline, and a price quote, are known as tenders or bids. Since Beng Huay Construction Pte Ltd submitted the most competitive tender and was awarded the contract, there is acceptance on Beng Huay Construction Pte Ltd. Whether or not BH can revoke their bid and withdraw from the project entirely depend on what was the terms and conditions stated in the contract. For a contract to be valid, there must be an offer initially by one of the parties. In this case here BH could argue that CPL had under-priced part of the job.
It is not possible under these circumstances because the general rule is that an offer can be withdrawn at any time prior to acceptance. However in this case, the offer has already been accepted. Firstly, CPL placed an advertisement for a tender to construct a warehouse cum factory complex somewhere in Boon Lay which is regarded to as an Invitation To Treat. Next, BH submitted the most competitive tender which in this case is considered as the offer. Following which, BH was awarded the contract which in this case is regarded as the acceptance by CPL of the offer by BH, and as a result, a legally binding contract has been formed. As such, it is not possible for BH to revoke their bid and withdraw from the project entirely in this case since the offer had already been accepted.
However since BH will be unable to revoke the bid and withdraw from the project entirely the parties can engage an independent third party mediator to hear their respective views. The mediator can then try to mediate the dispute and lead the parties into an acceptable settlement.
Question 2 – Part A
Contract and Agency Law
Group Based Case Study
Bai Kailin Q0806156
Question 1
A tender is also considered as an offer. Tenders refers to a process by which one can seek prices and terms for a particular project (such as a construction job in this case) to be carried out under a contract. The sealed offers themselves, including company information, a project outline, and a price quote, are known as tenders or bids. Since Beng Huay Construction Pte Ltd submitted the most competitive tender and was awarded the contract, there is acceptance on Beng Huay Construction Pte Ltd. Whether or not BH can revoke their bid and withdraw from the project entirely depend on what was the terms and conditions stated in the contract. For a contract to be valid, there must be an offer initially by one of the parties. In this case here BH could argue that CPL had under-priced part of the job.
It is not possible under these circumstances because the general rule is that an offer can be withdrawn at any time prior to acceptance. However in this case, the offer has already been accepted. Firstly, CPL placed an advertisement for a tender to construct a warehouse cum factory complex somewhere in Boon Lay which is regarded to as an Invitation To Treat. Next, BH submitted the most competitive tender which in this case is considered as the offer. Following which, BH was awarded the contract which in this case is regarded as the acceptance by CPL of the offer by BH, and as a result, a legally binding contract has been formed. As such, it is not possible for BH to revoke their bid and withdraw from the project entirely in this case since the offer had already been accepted.
However since BH will be unable to revoke the bid and withdraw from the project entirely the parties can engage an independent third party mediator to hear their respective views. The mediator can then try to mediate the dispute and lead the parties into an acceptable settlement.
Question 2 – Part A