Professional Documents
Culture Documents
Law of Contracts
Law of Contracts
PRN – 20010223031
Group III
Division D
ISSUE –
If the supplier refused to supply the goods, whether he revoked the offer
or the acceptance of the Government?
If there was a concluded contract between the Government and M/s ABC
Surgical?
RULE –
Section 4: -
As against the person who makes it, when it is put into a course of
transmission to the person to whom it is made, so as to be out of the
power of the person who makes it; as against the person to whom it is
made, when it comes to his knowledge.
Section 5: -
Section 6(3)
A proposal is revoked by the failure of the acceptor to fulfil a condition
precedent to acceptance.
APPLICATION: -
When the supplier refused to supply the goods even after repeated
requests made by the government to supply the good, he is simply
in breach of contract. He did not revoke either the offer or the
acceptance. With the means of biding readily accepted by the
government, he responded to the standing offer and the tender was
further approved for a period of 1 year, i.e., from October 28, 2020
to October 27, 2021.
Facts: -
The plaintiffs advertised for tenders for the supply of stores. The
defendant made a tender to the effect that he undertook to supply the
company for twelve months with such quantities of special articles as the
company may order from time to time. The Company, by a letter
accepted the tender and subsequently gave various orders which were
executed by the defendant. Ultimately the Company gave an order for
goods within the schedule, which the defendant refused to supply.
Judgement: -
On account of the case of Bengal Coal Co. v. Homee Wadia and Co.
Conclusion: -
Since the company readily bid for the tender and obtained the approval,
there is a legitimate & valid contract between the government and the
company. Owing to its failure to deliver the products despite repeated
demands made by the government, it is in breach of contract.
On the part of the company, there was no valid revocation as it neglected
to disclose the same to the government.