Question
Mega-Shop Malls Ltd ('MML') owns and operates a major shopping centre, Eastfield Plaza ('the Plaza'), in Brisbane. MML wishes to have the exterior walls of
Mega-Shop Malls Ltd ('MML') owns and operates a major shopping centre, Eastfield Plaza ('the Plaza'), in Brisbane. MML wishes to have the exterior walls of the Plaza painted in the existing colour scheme. On 25 January, its lawyers send an identical letter to each of the three largest commercial painting contractors in South East Queensland as follows: Mega-Shop Malls Ltd wishes to engage a contractor to paint the exterior walls of its Eastfield Plaza (Brisbane) in its existing colours. It is calling for tenders for this work. All tenders will be treated as confidential, and Mega-Shop Malls Ltd will accept and be bound to the lowestpriced complying tender received at its offices by close of tender (5:00 pm) on 24 February. All tenders must be accompanied by a $100 administration fee. Inspections are welcome. A document setting out the details of the painting services required is attached. 2 Paints-R-Us Ltd receives MML's letter. In response, it posts a tender to MML, together with the $100 administration fee, stating a price of '$50,000 below the lowest-priced tender received by you'. This tender arrives at MML's offices on 20 February. Colour Craft Pty Ltd ('Colour Craft') receives MML's letter. Unfortunately, Colour Craft is struggling financially and MML learns of the company's difficulties. Consequently, MML decides that it does not wish to deal with Colour Craft. MML's lawyers send Colour Craft a second letter 'withdrawing Mega-Shop Malls Ltd's tender invitation of 25 January'. Colour Craft does not receive this letter but nevertheless hears of its existence and content from one of MML's major tenants in the Plaza. Still, on 21 February, Colour Craft hand-delivers a tender to MML's offices, together with the $100 administration fee, stating a price of $475,000. Rainbow Brush and Roller Pty Ltd ('Rainbow') receives MML's letter. In response, on 22 February, it couriers a tender to MML's offices, together with the $100 administration fee, stating a price of $500,000. The courier delivers the tender later that day. However, on 23 February, Rainbow has a change of heart about participating in the tender. It faxes MML's offices during business hours on that same day stating that it no longer wishes to proceed with its tender. Unfortunately, this fax goes unnoticed within MML's offices for three days. MML seeks your advice on its rights and obligations arising in relation to each of the abovementioned tenderers. Advise MML.
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