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Contract Law - Essay Example

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There was no breach of contract in this case because the parties never had as contract to begin with. For a contract to exist there must be a meeting of the minds…
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Contract Law
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Download file to see previous pages To give us a clear understanding of why this is so, let us take a look at the important issues presented in this case.
There are two important issues that are involved in this case namely, (a) whether or not Bowford University is bound by its advertisement and (b) whether or not Dustbusters is entitled to the contract considering that it placed its bid within the prescribed time and that its bid proved to be the lowest.
With regards to the first issue at bar, we can clearly see that Bowford University cannot be bound by its advertisement. The decision of the count in the case of Partridge v Crittenden 1 and in the case of Harvey v. Facey2 explicitly stated that a seller should not be bound by the advertisement or to contract the services of the bidder. An advertisement is not a direct offer but rather an invitation to treat or an invitation to negotiate. By nature, an invitation to treat includes the display of goods, advertisement and direct invitation for competitive bids (A Burrows, 2009). Unless these acts are accompanied by express statements or promise to sell or to contract services, the person or entity that placed the advertisement or displays the goods is not bound to sell or contract the services of those who responded to the invitation. According to the case of Spencer v Harding3, an offer inviting tenders does “not amount to an offer capable of acceptance to sell”.
Since the advertisement of Bowford University did not clearly stated that they are going to contract the services of the bidders, the bidders cannot compel Bowford to hire them. Clearly, Bowford is only inviting offers which they can either accept or reject as they see fit. Given this scenario, even if Dusbusters did submit their offer within the time stated in the advertisement, that is not an assurance that they will win the contract.
When can an advertisement be considered as binding on the invitor? An advertisement can be held as binding on ...Download file to see next pagesRead More
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