MACQUARIE GENERATION V CNA RESOURCES [2001] NSWSC 1040
Supreme Court of NSW – 15 November 2001
FACTS
In mid-2000, Macquarie invited tenders for the supply of crushed coal in accordance with the quality requirements defined in the specification. It was a term of the Invitation to Tender that all tenders submitted were to be irrevocable, open for 180 days after the close of the tender period and were capable of immediate acceptance by Macquarie.
CNA submitted a tender in which they proposed to supply coal from two areas which were the subject of a mining lease application by CNA which had not yet been converted into a mining lease. CNA’s tender purported to be subject to a number of conditions including one requiring the approval of a related company’s board.
On 15 March 2002, Macquarie wrote to CNA stating that it had accepted the offer in the tender. CNA did not reply to this letter as prior to 15 March 2002, they had made Macquarie aware that the board had not accepted the conditions of the tender.
Macquarie filed a summons seeking a declaration that CNA had wrongfully repudiated the agreement brought into existence upon submission by CNA of its tender.
ISSUES
Did a contract come into existence when CNA delivered the tender to Macquarie?
Did the tender comprise an unconditional offer by CNA capable of acceptance by Macquarie?
Was the offer still open to Macquarie on 15 March 2001?
Did Macquarie itself wrongfully repudiate the contract by insisting on a formal instrument being executed by CNA?
Did CNA wrongfully repudiate the contract?
FINDING
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