Basic Principles of Contract | Contract Law

Perclval Ltd. v. London County Council Asylums and Mental Deficiency Committee

Citation:  (1918) 87 L.JKB 677

FACTS:

The plaintiffs advertised for tenders for the supply of stores. The defendant made a tender to the effect that he undertook to supply the company for twelve months with such quantities of special articles as the company may order from time to time. The Company, by a letter accepted the tender and subsequently gave various orders which were executed by the defendant. Ultimately the Company gave an order for goods within the schedule, which the defendant refused to supply.

HELD:

The Company succeeded in an action for breach of contract. The tender was a standing offer, to be converted into a series of contracts by the subsequent acts of the company and that an order prevented pro tanto tha possibility of revocation, and the defendant, though he might regain his liberty of action for the future, was meanwhile bound to supply the goods actually ordered.

Referred in Mrs. Chand Kunwar and Ors. v. State of Rajasthan

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