Legal Advice - Contractual Issue
Discussion
Hi,
A friend has a situation he has asked me to advise on, and being a while since I have been in any similar situation I am not sure if my advice is correct. My initial reaction was that the third party does not have a case, but having doubts and would very much appreciate some opinions and input, prior to him seeking a solicitor's advice.
The situation is as follows:
Company A is friend's company, the customer.
Company B is third party company, the supplier.
Company A has previous business relations with B.
A requests a quote from B. B attends a site survey.
B quotes A a price, which A accepts (over email) and requests more intimate information on the work to be done.
A then requests a modification in the quotation, as the work required has changed.
B requotes, but A is not happy with the price, and informs B that they have obtained quotes elsewhere which are far cheaper. A cancels the order.
B claims that A cannot cancel the order, and wants specific performance, or damages based on the profit element of the quote.
No money has passed between the two parties.
A has offered, as goodwill, a small payment for the site attendance, as B claims that site survey would not have been carried out for free, if they did not believe acceptance was forthcoming. Note that site survey was done to ascertain price, and at that point, nothing was accepted.
My opinion is that there is no contract. There is no consideration, and the quotation was varied by Company B, and this second quotation which was not accepted.
Any thoughts?
Thank you in advance.
A friend has a situation he has asked me to advise on, and being a while since I have been in any similar situation I am not sure if my advice is correct. My initial reaction was that the third party does not have a case, but having doubts and would very much appreciate some opinions and input, prior to him seeking a solicitor's advice.
The situation is as follows:
Company A is friend's company, the customer.
Company B is third party company, the supplier.
Company A has previous business relations with B.
A requests a quote from B. B attends a site survey.
B quotes A a price, which A accepts (over email) and requests more intimate information on the work to be done.
A then requests a modification in the quotation, as the work required has changed.
B requotes, but A is not happy with the price, and informs B that they have obtained quotes elsewhere which are far cheaper. A cancels the order.
B claims that A cannot cancel the order, and wants specific performance, or damages based on the profit element of the quote.
No money has passed between the two parties.
A has offered, as goodwill, a small payment for the site attendance, as B claims that site survey would not have been carried out for free, if they did not believe acceptance was forthcoming. Note that site survey was done to ascertain price, and at that point, nothing was accepted.
My opinion is that there is no contract. There is no consideration, and the quotation was varied by Company B, and this second quotation which was not accepted.
Any thoughts?
Thank you in advance.
Thank you all for the replies.
I think as far as the t&c are concerned, having not afforded sight of them myself, my friend mentions that the t&cs state a 25% deposit but does not specifically state that it is required prior to any works commencing.
I was thinking that the requote was a get out for my friend, but I'm not sure if it was a variation of the work requote or additional work, and no change to the original work quoted for.
At the very least, the additional quote is not binding, and only the original quote would be?
Another aspect I looked at was that since it was not a director of the firm that accepted the quote, does this still mean it is binding?
I think as far as the t&c are concerned, having not afforded sight of them myself, my friend mentions that the t&cs state a 25% deposit but does not specifically state that it is required prior to any works commencing.
I was thinking that the requote was a get out for my friend, but I'm not sure if it was a variation of the work requote or additional work, and no change to the original work quoted for.
At the very least, the additional quote is not binding, and only the original quote would be?
Another aspect I looked at was that since it was not a director of the firm that accepted the quote, does this still mean it is binding?
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