On Monday Benmark Steel Ltd. offers to sell 500 tonnes of steel to Lands End Ltd. at £800 per tonne. The offer to Lands End Ltd. indicates “Please email or call via telephone to accept the offer by noon on Tuesday. The steel will be delivered next Tuesday.”
Lands End Ltd. faxes an acceptance at 9.00am on Tuesday, and is confirmed that the message has been delivered by their fax machine. However, there was a problem with the fax receiving machine at Benmark Steel Ltd. therefore the Lands End Ltd.’s acceptance is not received.
Lands End Ltd. believes that there is a contract and enters into a contract with Dalfour Deatty Ltd. to produce steel claddings, expecting the steel to be deliver on Tuesday.
Advise Lands End Ltd. whether there is a binding contract with Benmark Steel Ltd.
What are the advantages of using NEC Contract (Engineering and Construction Contract)?