LAW OF

CONTRACT
PART 03
TENDER
 C. Tender
• A tender is only ITT.
• X invites a supplier to tender a quotation for
goods or services.
• An action taken by X is not an offer,
therefore X is not bind to accept the bid.
 C. Tender

• An offer is actually made by the supplier to X.

• A person who make a notice of
tender/announcement all FREE to
ACCEPT/REJECT.
 Spencer v Harding
• The D made announcement inviting
tenders for sale of certain goods.
• The offer made by the P is the highest
but the D did not accepted that.
• The P alleged that the D had breached
the contract.
 Spencer v Harding
• The Court:

• A circular offering stock for sale by tender

was simply a proclamation that the D were
already to negotiate for sale of goods and it
merely ITT.
• No obligation to sell to the highest bidder
 Spencer v Harding
• The Court:

• HOWEVER…
• It is different if stated that “ the highest
bid/low quotation will be definitely be
accepted.
 D. Auction

• An auction is only ITT.

• The auctioneer is merely inviting the people
present to make proposals which the auctioneer
may accept or decline to accept.
• Person who bids the price is the offerror.
 D. Auction
• Acceptance to the offer by the auctioneer is by
knock of hammer
(S.10 of the Auction Sale Act).
 E. Price List/ Quotation
• Not an offer= only ITT.
• As early information to invite the prospective
buyer to make an offer.
 E. Price List/ Quotation
• Given opportunity to the buyers to choose the
best price.

• Seller – entitled to reject/accept as well as to

make counter offer with a new price.
Preston Corporation Sdn Bhd v
Edward Leong & Others [1982]
2 MLJ 22

• The Publisher asked for quotation from the

Printers
• The (R ) gave quotation to the A.
• A then made some printing orders based on
the quotation given.
• The Court laid down the principles:

• The quotation were only supply of

information which was an invitation to the A
to make an offer /ITT in order to get the R’s
service.
• The printing orders made by the A=Offer
which was subject to the acceptance by the
R.
 • Explanation :
The printing orders made by the A=Offer which
was subject to the acceptance by the R.

Date of order { offer}

& date of confirmation { acceptance}
i.e. confirm- invoice.
 • Salleh Abas F.J

“in our view, the date of confirmation

was the date on which contractual
relationship between the parties began
because the offer in the context of offer
& acceptance necessary for the
formation of a contract was the printing
order and not the quotation.”
Continue to
Part 4
Thank You