Offer and Acceptance case study in contract management

Matt Is the project manager for Testes on the construction of the Doctoral town road.

Matt In January, 2014 evaluated the progress of work and realized that the company needed bitumen. As a prudent project manageress she opened tender for the delivery of price quotations for the supply of bitumen. Linda Company Limited (L. C. L) delivered its tender on schedule proposing a price quotation of $1,000 for a truck of bitumen.

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Matt wrote to the M. D of L. C. L proposing to buy the bitumen for $900 per truck.


For the M. D for L. C. L replied Matt agreeing to their price quotation of $900 per truck. Upon delivery of the bitumen by L. C.

L, Testes Company Ltd. Declined to receive the bitumen contending that a valid and enforceable contract has not been reached between them since negotiations were still ongoing. Mr.. For and his L. C.

L dissatisfied with this situation approach you for legal advice. Mans: In the first place the act by Tastes opening tender for pries quotations merely constitute and Invitation to treat and they are not oblige by law to accept any offers.

L. C. L’s Minimal tender quoting $1,000 for a truck of bitumen constituted and offer.

This offer did not meet acceptance because, Tastes accepted Introducing a condition to buy at $900. This act by Tastes constitute a counter offer. Tassel’s counter offer to buy the bitumen at $900 was accepted by L. C. L.

A valid and enforceable contract can be said to have been reached at this stage. Therefore Testes declining to receive the bitumen at $900 a clear breach of contract. I advice Mr.. For and L. C.

L to institute legal action against Testes Co. Ltd.