There are also indications that a limited form of good faith is a factor in other areas, such as agreements to lock oneself out of negotiations with another person and in relation to invitations to tender. In Blackpool and Fylde Aero Club Ltd v Blackpool Borough Council, the council made invitations to tender for the operation of pleasure flights from Blackpool airport, specifying that tenders should be received by a particular date and time. The plaintiffs submitted a tender entirely in accordance with the specifications laid down, but their tender was not even considered. The Court of Appeal held that there was a duty to ensure that all conforming tenders were considered and that the plaintiffs were entitled to damages for their lost opportunity: Blackpool and Fylde Aero Club Ltd v Blackpool Borough Council [1990] 1 WLR 1195, CA, p 1200

doi:10.4324/9781843141518-91

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There are also indications that a limited form of good faith is a factor in other areas, such as agreements to lock oneself out of negotiations with another person and in relation to invitations to tender. In Blackpool and Fylde Aero Club Ltd v Blackpool Borough Council, the council made invitations to tender for the operation of pleasure flights from Blackpool airport, specifying that tenders should be received by a particular date and time. The plaintiffs submitted a tender entirely in accordance with the specifications laid down, but their tender was not even considered. The Court of Appeal held that there was a duty to ensure that all conforming tenders were considered and that the plaintiffs were entitled to damages for their lost opportunity: Blackpool and Fylde Aero Club Ltd v Blackpool Borough Council [1990] 1 WLR 1195, CA, p 1200

ABSTRACT

In attacking the judge’s conclusion on this issue, Mr Toulson for the council, made four main submissions. First, it was submitted that an invitation to tender in this form was well established to be no more than a proclamation of willingness to receive offers. Even without the first sentence of the council’s invitation to tender in this case, the council would not have been bound to accept the highest or any tender. An invitation to tender in this form was an invitation to treat, and no contract of any kind would come into existence unless or until, if ever, the council chose to accept any tender or other offer. For these propositions reliance was placed on Spencer v Harding (1870) LR 5 CP 561 and Harris v Nickerson (1873) LR 8 QB 286.