Professional Engineering Practice Contract Law – part 3 Image credit: PCStuff 03:50, 31 July 2006 (UTC)

Pre-test

Pre-test

Contract A, B Contract A – the tendering process Offer = request for proposals Acceptance = submission of irrevocable proposal Contract B – the contract in the tender that was accepted Contract A errors: offeror or tenderer If RFP terms change, tenderers may sue offeror – offeror may have to ignore offers from tenderers who are non-compliant to original RFP

Contract law Contract A: Unilateral mistake Generally “tough luck” – but Pre-tender opening, no contract exists Post-tender opening, pre-decision, Principle of contract A

Contract A Tenderer makes a mistake: Basic principle Belle river You are responsible for your own mistakes (you will have to pay for them) BUT: Belle river If you realize your mistake immediately and try to pull out your bid before tenders are opened, you are not liable for the cost of the bid (the bid was not the intended offer) Ron Engineering If you realize the error after the bids are opened, you are only liable for the bid deposit, not the cost of the work to be contracted too (the origin of the contract A concept).

Implied terms Hunter engineering v Syncrude Moorcock Gearboxes not fit for purpose, but limitation of liability was in contract Strict interpretation should only be questioned when there is a matter of contractual unconscionability such as where parties have unequal bargaining power This is unlikely in the case of business contracts Moorcock By accepting to moor a ship at the wharf, it was implied the mooring would be safe for the ship. The contract for mooring the ship at the wharf without the term would not make business sense (who would moor their ship where it would get damaged?).

Discharge of contract Performance Agreement to discharge both parties completed their obligations Agreement to discharge both parties agree to cancel or terminate “Express discharge terms” if terms allow for quick discharge in case of e.g. bankruptcy or other act

Discharge of contract Repudiation Frustration Breach of contract one side states they will not fulfill contract (other side can choose to ignore, or can claim damages) Frustration through no fault of either side, the contract becomes impossible to fulfill Breach of contract one side fails to meet the terms of the contract (but does not state as such) – will be covered in another mix.

Post-test

Post-test

Post-test