Question
Mashala Ltd is a mining company which requires certain mining equipment for its operations. It advertises an invitation for tenders for the supply of mining
Mashala Ltd is a mining company which requires certain mining equipment for its operations. It advertises an invitation for tenders for the supply of mining equipment. Tefo had responded first to the advertisement, yet was unsuccessful. Paballo was found to have offered the best price and the company intended to award her the contract. However, due to a mistake by the secretary of the company, communication was erroneously sent to Limpho informing her that her tender had been accepted. Limpho gets a loan from a bank and orders the equipment to be supplied. Tefo claims that, as he had been the first to respond to the advertisement, his acceptance created a contract between himself and Mashala Ltd and therefore the company was wrong to have awarded the contract to someone else. The company claims that there is no contract between itself and Limpho, since she received the communication by mistake. Required: (a) State the nature of an offer in the law of contract. (2 marks) (b) Explain whether Tefo is correct in his claim. (2 marks) (c) Explain whether the companys argument is correct under the law of contract. (2 marks) (
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