GREAT NORTHERN RAILWAY COMPANY V. WITHAM [1873] LR 9 CP 16

Material Facts:

The plaintiff, the Great Northern Railway Company, advertised for tenders for the supply of materials over a period of twelve months. Witham submitted a tender for the supply, agreeing to supply to the plaintiff “in such quantities as the company's store-keeper might order from: time to time”, and the tender was accepted. At one point, the plaintiff gave an order for the supply of goods, and Witham refused to supply. The plaintiff sued for breach of contract.

Issues:

1. Whether or not it was binding on Witham to supply the materials anytime the Great Northern Railway Company placed an order within the stipulated period.

Holding:

1. The court held that the plaintiffs orders for goods within the stipulated period was binding on Witham.

Ratio Decidendi:

The court stated that Witham’s tender constituted a standing offer that could be accepted anytime within the stipulated period contained in the invitation to tender. Anytime the plaintiff made an order, it gave rise to a new contract for the supply of goods because the order constituted an acceptance of the standing order.

Comments:

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