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

2. Pre-test

3. Pre-test

4. 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

5. 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

6. 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).

7. 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?).

8. 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

9. 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.

10. Post-test

11. Post-test

12. Post-test