Discuss about the Contract Law for Trident Systems Pty Ltd

Assignment Question:

Discuss about the Contract Law for Trident Systems Pty Ltd.

Assignment Answer:


Tender is an invitation to offer in which a corporation calls for bids from the prospective bidders. The company selects the best option as per its requirement and accepts the offer made by the bidder. In the present case, the NSW Department of Administrative Affairs invited tender from independent contractors to increase the safety of its main office. The department made an advertisement of tender and directed the parties for the online registration. The Alcatraz Security Systems Pty Ltd submitted their tender by complying with the guidelines provided by the department, although, the guidelines provided by the department to Alcatraz did not disclose all the necessary information as per section 5. The department accepted the tender of Trident Systems Pty Ltd, which quoted its price at 50 percent more than Alcatraz. Frank discovered that head of the department leaked the details of his tender to Trident before they submitted their tender.


The issues of this case include, whether the NSW Department of Administrative Affairs is under an obligation to admit the tender of Alcatraz. Another issue is that if the department is not obligated then whether Alcatraz has any contractual right.


The common law of Australia guides the contractual behavior between the parties to a contract. According to the common law of the contract, offer and acceptance are the essential elements for establishing a valid contract between two parties. One person is required to give an offer which another party must accept without any change in requirements[1]. Further, the common law distinguishes between an offer for contract and an offer which is merely a request to the party, in order to create offers to do negotiations related to the contract. In Spencer v Harding Law case[2], the court held that the advertisement was an invitation to contract and the tender was a proposal, the defendant has right to admit such tender or not. In the case of Pharmaceutical Society of Great Britain v Boots Cash Chemists (Southern) Ltd[3], the court provided that the price tag displaying on a dress in a shop is considered an invitation to offer, not an offer for a contract[4]. If a customer approaches the shopkeeper to buy such item, then it cannot be considered as an acceptance rather it is an offer which may or may not be accepted by the shopkeeper. Further, in the case of Carlill v Carbolic Smoke Ball Co[5], the court held that a general offer is a valid offer if any person accepts such offer then the person automatically enters into the legally binding contract with another person. In AGC (Advances) Ltd v. McWhirter case[6] the court held that in case of an auction, it is only an invitation to treat not an offer and bidder at auction make an offer for the acceptance of the auctioneers which can be and cannot be accepted. Further, in the case of Blackpool & Fylde Aero Club v Blackpool Borough Council,[7] the court held that if an invitation to offer is made only to selective parties, along with clear guidelines for submitting the bids, then such invitation to offer is considered as an offer. After that, any bid or tender submitted by any of such selective parties will be