Cases - Peter Lind & Co v Mersey Docks & Harbour Board

Record details

Name

Peter Lind & Co v Mersey Docks & Harbour Board

Date

[1972]

Citation

2 Lloyd's Rep. 234

Keywords

Tendering and procurement

Summary

The claimant contractors submitted two tenders for construction of a new freight terminal. One tender was for a fixed price, the other was on a fluctuating price basis. The defendants advised that they intended to accept 'your tender' pending approval under the Harbour Acts and completion of necessary formalities. There was a steep rise in the cost of materials in the following months, after which the defendants confirmed acceptance of 'your tender' and arranged for preparation of contract documents on a fixed price basis. The plaintiffs refused to sign the agreement but continued with the work.

Cooke J held that the acceptance was imprecise in that it did not specify which tender had been accepted. The claimants were entitled to a declaration that there was no contract and they were entitled to a quantum meruit payment.