Specific Tender: where it is clearly specified what is required and when.
Spencer v Harding (1870)
A tender was offered with no specific message that any tender would be considered. This was held to be valid, if no tender is to be considered is mentioned at the time the tender is issued or no message at all is given, no tender need be considered.
Where a party in an invitation to tender specifies that it will be bound by say the highest or lowest tender then the invitation to tender becomes an offer to accept the highest or lowest bid. ('Binding yourself to accept the lowest/highest bid')
Harvela Investments Ltd v Royal Trust Company of Canada Ltd (1986)
The offers were to be made by a deadline in the form of sealed bids. One party's offer consisted of a referential bid in that he offered a sum of money, but also offered, in the alternative, a sum that was a fixed amount higher than any other bid. The shareholder wished to accept this bid, for obvious reasons, but the House of Lords held that it did not constitute acceptance appropriate to the firm offer, ie: to accept the highest bidder, that had been made. The shareholder's willingness to accept it demonstrated that he did not fully comprehend the proposal he had made. In fact, the other party had offered a greater amount in terms of actual specified amounts and was therefore the highest bidder. Point of Law, a referential bid cannot be acceptance of a firm offer. Whether a request for parties to tender will be an offer, or an invitation to treat, will depend on the terms of that request. Obiter if allowed it would present practical problems if all made a referential bid who would be successful? And it went against the principles of fixed bidding, which is to provoke best price.
Standing offer tender:
Great Northern Railway v Witham (1873)
W supplied coal at times and quantities as required by the store master, there was a request for supplies which was not met and was successfully sued. The court held that W offer was a standing offer tender, which, as each order is placed, becomes a series of contracts that the tenderer is obliged to fulfil. Thus when the order was placed he had obligation to supply the goods. (Cant insist on orders and can withdraw offer anytime so long as an order has not been placed and the revocation is communicated to the other party)
Percival V LCC (1918)
P submitted a tender "in such quantities and at such times in such a manner" as LCC required. P claimed damages for breach of contract as LCC had not placed an order. Held acceptance of a non specific tender didn't constitute a contract therefore LCC not obliged to order goods.
Blackpool Aero Club v Blackpool Borough Council (1990)
BBC invited tenders to operate an airport, to be submitted by noon on a fixed date. The plaintiffs tender was delivered by hand and put in the Town Hall letter box at 11am. However, the tender was recorded as having been received late and was not considered. The club sued for breach of an alleged warranty that a tender received by the deadline would be considered. The judge awarded damages for breach of contract and negligence. The council's appeal was dismissed by the Court of Appeal.