Blackpool Borough Council v Blackpool & Fylde Aero Club [1990] 1 WLR 1195

Court: Court of Appeal

Facts: Blackpool Borough Council invited tenders for a new licence to operate both light and heavy aircraft from Blackpool Airport, with a deadline of noon on March 17, 1983. The Blackpool & Fylde Aero Club submitted a bid before the deadline by placing it in the Town Hall letter box at 11 am. Due to an administrative error, the bid was deemed late, and the licence was awarded to Red Rose Helicopters. When it was discovered that the Aero Club's bid had been timely, the Council declared the tenders invalid and invited new ones. Red Rose Helicopters claimed a right to the licence, leading the Council to withdraw the new tenders and proceed with Red Rose Helicopters. The Aero Club brought the case to court.

Issue: Did the submission of a compliant and timely tender constitute acceptance of the Council's unilateral offer to consider all bids, thereby forming a contractual obligation?

Held: The Court of Appeal ruled in favor of the Aero Club, holding that the invitation to tender constituted a unilateral offer, and the Aero Club's submission of a timely and conforming bid constituted acceptance of that offer. Thus, a contractual obligation was formed requiring the Council to consider the Aero Club's bid.

Key Judicial Statement: "The invitation to tender was, to a limited extent, an offer, and the Club's submission of a timely and conforming tender constituted acceptance."

💡Leveluplaw: This case highlights that an invitation to tender can act as a unilateral offer, which is accepted when a bidder submits a compliant and timely bid. The case underscores the importance of administrative accuracy in the tendering process and the obligation to consider all valid tenders.