Hard-up Construction wants to know (a) Whether they have any right against university of South Yorkshire (Their employer) for refusal of payment of additional payment of £600,000 on top of the original contract price and (b) Whether they are entitled to £50,000, as promised by Ms Barbara Ella.ln order for them to succeed they will have to show that South Yorkshire reluctantly agreeing and Ms Barbara Ella promise was contractually binding. The two issues can be out to be looked at separately. Issue L (A): Does The Initial Agreement Between Hard-Up- Construction And South Yorkshire Constitute An Enforceable Contract?
For a bilateral contract (Here both parties make promises, which are contained in the offer and acceptance) to be enforceable there must exist:(i) an agreement (which can be evidenced by an 'offer' and an 'acceptance') ;( ii) an intention to create legal relation; and (iii) a set of promises-forming the basis of contract -which are supported by consideration. Applying these principles to the facts it would appear, that the contract between Hard-up (H) and South Yorkshire(S) is bilateral, H agreeing to perform an act for S in exchange of payment. A contract could be said to have come in existence where S awards H a tender to build the institute for Space Research. The general rule is that invitation to tender is simply an invitation to treat, but there is circumstance where the court have treated them as offers.The offer is made by the person who submits tender (H) and acceptance is made when the person inviting the tenders accepts (S) one of them. The next issue would be whether H and S intended to create legally relation. The presumption is that parties to commercial agreements do intend to create legal relations and the presumption is a heavy one. Although the presumption may be rebutted by express term of the contract which states that the parties do not intend to create legal relation. From the facts it may be contused that there