Solution to Question 1

The call for the tenders is not actually the offer it is just a piece of information where the one party
informs other party that it is interested it the offer made by the other party hence the parties filing for
the tender are actually the offeror who are making an offer. This offer is not binding until it is accepted
by the tenderor. For an offer to be accepted it must possess all the essential elements of a valid offer. In
the case of tenders the postal rule is often applied which is an exception to the general rule that an
acceptance is only created when communicated directed to the offeror. An acceptance is binding and
the contract is said to be perfected when the acceptor places this acceptance in the mail box for return
mail even if in fact it never reaches the offerer.

Although a due date was set for receiving the offers but it was upto the university to accept or reject
the offer. An offer not followed by acceptance or any kind of actions that lead to acceptance is not
binding. This criteria in the abovementioned case is due date of the 1st june. Now Greenland handed its
tender on 29th may the tender offer was acceptable because it was made before the due date. Now
Enviro posted his offer early. Although the offer was made in time, was the most appropriate for being
timely, lowest and with the most attractive features but the offer was failed to be put in the tender box
on the part of mistake by the assistant of university but it is up to the university to accept or reject the
offer. Plant forever posted its tender offer on 30th May which was received on 2nd june due to which it
was nevertheless put in the tender box. The Greenland’s tender price was the next lowest but because
of the expected unreliability the university decided to award the tender to the Plant forever despite the
fact that the tender offer was received late. The university posted the letter of acceptance to the Plant
forever. Here the postal rule applies which is the exception to the general rule of the acceptance which
states that an acceptance is binding when the acceptor places his acceptance in the mail box for the
return mail even though it never reaches the offeror. Hence as the university posted the acceptance
letter the offer is accepted and the contract is binding on the part of the university. Now the postal rule
also describes the rule of acceptance to be binding on the part of the offeror the acceptance is binding
when the offeror receives the offer and not before. Hence although the university posted the
acceptance letter but the letter was failed to reach Plant Forever. Hence Plant Forever never received
the acceptance letter. For an acceptance to be binding and converted into the contract both parties
must be consensus. Plant forever being unaware of the acceptance of their offer sold their full stock of
seed to another contract with the regional council. Although under common law and equity many
remedies are available to remove the grievance factor among the parties but in this particular case the
only remedy that can be applied is the cancellation of the contract. As for the contract to be binding
Plant forever must be aware of their offer being accepted which is not the case hence the formation of
contract is not completed. Due to which the university can not avail any other remedy under the
common law and equity except the cancellation of the contract.

Solution to Question 2

Footloose Pty Ltd places a notice in the Daily Newspaper with the description in which it is mentioned
that it is waiting for the delivery of its latest summer collection consisted of slingback sandals and wedge
heels the price of which starts at $2000 per hundred pairs (certain styles only), big discount offer for the
bulk orders. Inquiries can be made to the sales manager Ms, Simone on 1400765432 or by fax on 06
9234 567. A notice in the newspaper is not an offer even though it contains all the description of the
offer but an invitation to offer. An offer must be made to some specific person or group of person or to
the general public and it has some specific time. When an offer is made to the general public it must
mentioned that it is an offer to the general public. An offer without a specific time period is not an offer
but an invitation to the offer. Hence this notice was not an offer but invitation to the offer. On 2nd
October Famous Footwear sent the following fax to Ms Simone “we accepted your offer in the daily
news. We wish to order 500pairs at $ 2000 per hundred. Details on delivery to follow”. This is an
acceptance where one party is giving acceptance to the offer made by the other party as there was not
an offer from the beginning hence this acceptance is not valid. As for a valid acceptance to become a
valid contract there must be the offer. However Footloose was not offering the purchase but was
inviting to make offer for purchase. As Famous Footwear mistook invitation to offer for an offer there
was no binding legal relationship between Footloose Pty Ltd and Famous Footwear.

On 4th October Ms Simone received a fax from the James of James’s shoes which stated “we refer to
your notice in the daily news and would like to purchase 2000 pairs of slingback sandals. Our best price
id $30000 including GST and delivery. Please advice” This is a valid offer which is made after the
awareness of the fact that the Footloose Pty Ltd is inviting offers for its products. On 6th October
Footloose sent the fax to Mr. James with a counter offer stating that it will sell 2000 pairs of slingback
sandals for $3000 excluding delivery, Payment by cash or cheque is due on delivery. Please advise. A
counter offer revokes the original offer as it is a new offer now suggesting new terms and conditions.
Now the original offer is revoked and the new offer stands valid with conditions of selling 2000 pairs of
sandals with a price of $ 3000 exluding delivery and payment on delivery. After receiving the mail from
Ms Simone James immediately writes the acknowledgement of acceptance but it this acknowledgement
is mailed on 8th October. After a short telephonic discussion on 10th October both parties agreed on the
terms that james’s shoes would takes delivery of sandals from Footloose’s Sydney warehouse on 1st
November. The contract becomes binding on the 8th October when James sent the mail of acceptance
of counter offer to Ms simone. This contract gives all the legal rights to both the parties arising from the
contract. In case of the any default on the part of any or both of the parties both parties can file a case
in the court demanding any remedies available under the common law and equity.