Pratt Contractors Ltd v Palmerston North City Council

Pratt Contractors Ltd v Palmerston North City Council [1995] 1 NZLR 469 is a cited case in New Zealand regarding contract formation involving tenders.

[1][2] The Palmerston North City Council put out for tender the construction of a flyover.

After discovering all this, Pratt Contractors sued the council for damages for loss of profits they would have received if they had won the tender..

The court held that the city council tender was a legally binding obligation, and as a result the city council should have given Pratt Contractors the opportunity to revise and resubmit their tender.

Footnote: The judge noted that the council could have alternatively accepted none of the tenders instead.