Cases According to Pakistani Law

1. 1. Tenders
Rana Traders vs Hafeez Dealers
The defendants advertised a sale by tender of the stock in trade. The advertisement specified where the
goods could be viewed, the time of opening for tenders and that the goods must be paid for in cash. No
reserve was stated. The claimant submitted the highest tender but the defendant refused to sell to him.
The Defendants did not promise to sell the stock to the highest bidder for cash. The Claimants sent a
tender to the Defendants which, following the submission of all tender was the highest tender. The
Defendants refused to sell the stock to the Claimants.
The Defendants submitted that the circular was not intended to be a binding offer capable of
acceptance. Rather, it was merely a circular inviting others to make offers. The Claimants submitted that
the circular did constitute a valid offer and that the Claimant had, by submitting the highest tender and
attending all the necessary meetings, accepted that offer.
The court decided that unless the advertisement specifies that the highest tender would be accepted
there was no obligation to sell to the person submitting the highest tender. The advert amounted to an
invitation to treat, the tender was an offer, and the defendant could choose whether to accept the offer
or not.