Blackpool & Fylde Aero Club v Blackpool Borough Council
Encyclopedia
Blackpool & Fylde Aero Club v Blackpool Borough Council [1990] EWCA Civ 13 is a leading English contract law
case on the issue of offer and acceptance
in relation to Call for bids. In it the Court of Appeal of England and Wales
decided that tenders and requests for tenders are accompanied by a collateral contract implying that the requestor will inspect the bid.
Three organisations replied, two of which sent in light bids for only the lighter class of aircraft. The Aero Club sent in a significantly higher bid for both classes of aircraft, and placed their offer in the Town Hall letter box at 11 am on the 17th, an hour before the deadline. The Town Clerk's staff failed to empty the letter box at 12 pm as they were expected to do, and as a result the letter was not considered 'delivered' until after the deadline, and the license was granted to one of the other bidders, Red Rose Helicopters.
After discussions between the Aero Club and the Council it became apparent the letter had been delivered on time, and the Council decided to rectify the situation by declaring the previous round of tenders invalid and inviting the submission of new tenders. At this point Red Rose Helicopters, having consulted their lawyers, informed the Council that they were contractually bound to grant the license to them. As a result of this the Council withdrew their offer of a second round of tenders, and pursued the contract with Red Rose Helicopters. The case went to the High Court of Justice, where the judge found in favour of the club. The Council appealed, and it was taken to the Court of Appeals, where Roger Toulson QC and Hugh Davies represented the Council, and Michael Shorrock QC and Paul Sylvester represented the Aero Club
's leading judgement read:
Stocker LJ agreed with Bingham LJ, and added:
Farquharson LJ agreed with the other two judges, and made no comment.
English contract law
English contract law is a body of law regulating contracts in England and Wales. With its roots in the lex mercatoria and the activism of the judiciary during the industrial revolution, it shares a heritage with countries across the Commonwealth , and the United States...
case on the issue of offer and acceptance
Offer and acceptance
Offer and acceptance analysis is a traditional approach in contract law used to determine whether an agreement exists between two parties. Agreement consists of an offer by an indication of one person to another of the offeror's willingness to enter into a contract on certain terms without...
in relation to Call for bids. In it the Court of Appeal of England and Wales
Court of Appeal of England and Wales
The Court of Appeal of England and Wales is the second most senior court in the English legal system, with only the Supreme Court of the United Kingdom above it...
decided that tenders and requests for tenders are accompanied by a collateral contract implying that the requestor will inspect the bid.
Facts
Blackpool Borough Council ran Blackpool Airport, and gave a license to a single company to run pleasure flights to and from the airport. Blackpool & Fylde Aero Club had held this license since 1975, and had been granted it again in 1978 and 1980. In 1983 the current license was due to expire, and the council sent out letters to seven organisations, including the Aero Club, inviting new tenders to a license to operate light and heavy aircraft from the airport, requiring a reply to be at the Town Hall 'not later than 12 o'clock noon on Thursday 17 March 1983'.Three organisations replied, two of which sent in light bids for only the lighter class of aircraft. The Aero Club sent in a significantly higher bid for both classes of aircraft, and placed their offer in the Town Hall letter box at 11 am on the 17th, an hour before the deadline. The Town Clerk's staff failed to empty the letter box at 12 pm as they were expected to do, and as a result the letter was not considered 'delivered' until after the deadline, and the license was granted to one of the other bidders, Red Rose Helicopters.
After discussions between the Aero Club and the Council it became apparent the letter had been delivered on time, and the Council decided to rectify the situation by declaring the previous round of tenders invalid and inviting the submission of new tenders. At this point Red Rose Helicopters, having consulted their lawyers, informed the Council that they were contractually bound to grant the license to them. As a result of this the Council withdrew their offer of a second round of tenders, and pursued the contract with Red Rose Helicopters. The case went to the High Court of Justice, where the judge found in favour of the club. The Council appealed, and it was taken to the Court of Appeals, where Roger Toulson QC and Hugh Davies represented the Council, and Michael Shorrock QC and Paul Sylvester represented the Aero Club
Judgment
Bingham LJThomas Bingham, Baron Bingham of Cornhill
Thomas Henry Bingham, Baron Bingham of Cornhill, KG PC QC FBA , was a British judge and jurist. He served in the highest judicial offices of the United Kingdom as Master of the Rolls, Lord Chief Justice and as Senior Law Lord before his retirement, when he focused his work as a teacher and lecturer...
's leading judgement read:
Stocker LJ agreed with Bingham LJ, and added:
Farquharson LJ agreed with the other two judges, and made no comment.