Blackpool and Fylde Aero Club Ltd v Blackpool
Borough Council (1990)
Blackpool Borough Council sent an invitation to tender to operate pleasure
flights from Blackpool airport to the Blackpool and Fylde Aero Club Ltd (the
club) and six other parties. The invitation to tender said that "[t]he
Council do not bind themselves to accept all or any part of any tender. No
tender which is received after the last date and time specified shall be
admitted for consideration.' The club posted its tender in the town hall
letterbox at about 1100 hrs on Thursday 17 March; this was an hour before the
advertised deadline expired. The council's staff failed to empty the letterbox
at 1200 hrs and as a result the tender was marked late and not considered by
the council. The council then accepted the highest tender which was from Red
Rose Helicopters. Later the council established that the club's tender had been
received in time and so they decided to declare the successful tender invalid
and to reissue the invitation to tender. However, Red Rose Helicopters
contended that its tender had been accepted and that the council was
contractually bound to proceed on that basis. The council decided to honour Red
Rose Helicopters' tender. The club bought an action for damages against the
council for breach of contract. The club argued that the council had warranted
that if a tender was received in good time the council would consider it and
that the council, having failed to consider its tender, was in breach of
contract.
Q Click
on the appropriate number
