CIPS Commercial Contracting L4M3 Question # 4 Topic 1 Discussion

CIPS Commercial Contracting L4M3 Question # 4 Topic 1 Discussion

L4M3 Exam Topic 1 Question 4 Discussion:
Question #: 4
Topic #: 1

SFO procurement manager sent a request for quotation to Vogon International in which he determined the contract terms and specification. In SFO's standard terms and conditions, it is stated that 'Goods shall be delivered and Services performed by the applicable Delivery Date. Supplier must notify Buyer 3 days prior to the Delivery Date if Supplier is likely to be unable to meet a Delivery Date.'

Vogon replied with a quotation without any amendment to SFO's terms & conditions. The SFO procurement manager found the prices were reasonable and submitted to senior management. Senior management team accepted that quotation and sent a notification to Vogon. On the Delivery Date, Vogon said they had no capacity to supply the product as the quotation due to a workers' strike. Did Vogon breach any agreement with SFO?


A.

No, because Vogon had no intention to be bound by the quotation, therefore, it didn’t constitute a contract


B.

No, because the strike is a force majeur event, so Vogon did not breach any contract with SFO


C.

Yes, because the contract was formed since Vogon had sent the quotation as an acceptance to SFO’s offer


D.

Yes, because the contract had been formed between SFO and Vogon with the quotation as an offer and the notification as an acceptance


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