Structure: Auctions, Tenders and Collateral Contracts Flashcards
(11 cards)
How does an auction function in relation to offer and acceptance?
Each bid is an offer, acceptance is the fall of the hammer
What is the rule in Section 57(2) Sales of Goods Act 1979?
The fall of the hammer in an auction is acceptance of the offer
Who acts as an agent in the auction?
The auctioneer - the contract is between the owner of the goods and the bidder
What was held in Warlow v Harrison?
Terming an auction ‘without reserve’ implies there is an obligation to sell to the highest bidder
What was held in Barry v Davies?
If an auctioneer refuses to sell to the highest bidder, the highest bidder may have a claim in breach of contract
What is a collateral contract?
The process by which the main contract will be performed - collateral contracts bind the offeree and offeror - for example, conditions of sale
What was held in Spencer v Harding?
Invitations to tender are usually ITTs but the bids themselves are offers
What was held in South Hetton coal v Haswell Shotton and Easington Coal and Coke?
A tender that calls for sealed bids will implicitly rule out referential bids unless they are expressly permitted
What is a referential bid?
Birds that reference another party’s bid
What was held in Blackpool & Fylde Aero Club v Blackpool Borough Council?
The COA held that given the wording of the tender documents, it was implicit in the tendering process that any bid delivered on time would be considered and that the award of the contract was invalid.
