Question
Dear Tutor, I need your guidance on the following tender contract question: Case Study: Kato is the owner of a food processing factory. To do
Dear Tutor,
I need your guidance on the following tender contract question:
Case Study:
Kato is the owner of a food processing factory. To do his part to combat climate change, he wishes to purchase new machinery for his factory to provide greater efficiency and decrease carbon emissions.
He intends to select the supplier for the machinery through a competitive tender process, and he has approached Zed for advice. He knows that he would need to take out advertisements in appropriate trade publications, called a "Request for Tender", to invite interested suppliers to submit their tender documents.
However, Kato is unsure about the contractual process in a tender scenario. Specifically, he has the following concerns:
- He is unsure if the advertisements that he will be placing (i.e. his "Request for Tender") would have any legal significance in binding him to any commitment.
- He wants to be able to call up any of the suppliers who have submitted tenders, if he has any further questions for them. He is not sure if he is able to do so without any legal repercussions.
- He is unsure as to the exact point in time that he would have a legally binding contract with the selected supplier, and he wants to have the ability to decide on the timing of contract formation.
- He wants to do things the "old-fashioned" way, i.e., he wants to meet with the selected supplier in person before accepting the deal orally. He is unsure if such an oral contract would be valid.
(A) Explain how and when the contract will be formed in this scenario between Kato and the selected supplier for the new machinery.
(B) Advise Kato on his specific concerns and make appropriate relevant recommendations.
(C) Discuss the elements of offer and acceptance and identify how they would be satisfied in this process as NOT required to discuss the elements of consideration and intention to create legal relations.
(D) State in-text citations in relation to the case study.
Thank you for your help. Appreciate!
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