The Municipality of Minuscule has just hired you as its business manager and the mayor just asked you to draft a call for tenders for the construction of a new municipal recreation centre. What is the legal definition of a response to a call for tenders?
A call for tenders is an invitation, sometimes to a larger audience and sometimes to a selected few for bids to complete a particular project.
A call for tenders is meant to request parties to submit bids against the call for tenders against a particular project.
In case the parties agree to proceed with contractual relations, a submission in response to a call for tender can lead to formation of a preliminary contract, let's say Contract A.
The contractual rights and obligations of both the parties concerned are governed by the express or implied terms of the tender documents.
Further, the bid constitutes formation of a secondary contract, Contract B, to contract the completion of the project against which bids were received. The terms & conditions in the tender are incorporated in Contract B.
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