Cases - Blackpool and Fylde Aero Club v Blackpool BC

Record details

Name
Blackpool and Fylde Aero Club v Blackpool BC
Date
[1990]
Citation
1 WLR 1195
Keywords
Tendering and procurement
Summary

The Club's tender for a contract for a pleasure flying concession was submitted within the Council's deadline for tenders but was mistakenly marked 'late' and was therefore not considered. The Club claimed damages both in breach of contract and negligence, which were awarded by the first instance judge on the ground that the Council's request for tenders gave rise to an implied obligation on it to consider valid tenders received within the time limit. The Court of Appeal dismissed the Council's appeal and its judgment is regarded as an important early landmark in the development of 'tender contracts'. Bingham LJ gave a classic statement of the traditionally strong position of the tendering authority (the Council):

'A tendering procedure of this kind is, in many respects, heavily weighted in favour of the invitor. He can invite tenders from as many or as few parties as he chooses. He need not tell any of them who else or how many others, he has invited. The invitee may often, although not here, be put to considerable labour and expense in preparing a tender, ordinarily without recompense if he is unsuccessful. The invitation to tender may itself, in a complex case, although again not here, involve time and expense to prepare, but the invitor does not commit himself to proceed with the project, whatever it is; he need not accept the highest tender; he need not accept any tender; he need not give reasons to justify his acceptance or rejection of any tender received.'

However, and crucially:

'The invitee is in my judgment protected at least to this extent: if he submits a conforming tender before the deadline he is entitled, not as a matter of mere expectation but of contractual right, to be sure that his tender will after the deadline be opened and considered in conjunction with all other conforming tenders or at least that his tender will be considered if others are.' (Emphasis added.)