Your manager is considering legal action against the National Health service. Further, your manager is concerned about Olufsen LED’s own procedures when they invite tenders for the supply of parts involved in creating the light emitting diodes.

Question:

You work for Olufsen LED who are a UK based company that manufacture light emitting diodes which are mainly used in the production of scientific equipment such as microscopes.

Previously the company has done well financially securing large contracts with private clients and the National Health Service through competitive tendering procedures.

In recent years Olufsen have missed out on some crucial tendered contracts with the National Health Service. The National Health Service has failed to give any indication of why other businesses were preferred over Olufsen LED’s bids.

Your manager is considering legal action against the National Health service. Further, your manager is concerned about Olufsen LED’s own procedures when they invite tenders for the supply of parts involved in creating the light emitting diodes.

Advise Olufsen LED as to how, in UK contract law, ‘offer and acceptance’ works. Critically evaluate the nature of tenders within this advice with reference to case law, legislation and academic opinion where appropriate.