Hello.
I need some advice regarding the following situation:
1. After a tender process, a part of an organisation has entered into a contract for the provision of (certain) services for an 18 month period which expired in July 2014
2. An extension of the contract was evoked for a further 3 months.
3. During the extension period another, larger part of the organisation has negotiatied with a vendor and decided to piggy back on the existing contract and on the Quote stipulated term of 3 years + 2x1
4. In my vendor meeting, it was implied that we are willing to either a) extend the current contract or b) more likely, enter into a new contract altogether. Under these discussions, the vendor will now forward a draft contract.
Given the above situation, I would like to understand what our position is under contract law. I would think that we should have probably gone to the market for another competitive tender given the increased volume in business. Otherwise, given the conversations with the vendor and other parts of the organisation, are we bound by commercial law to enter into a new agreement given the implication?
Any advice would be much appreciated.
Thanks.
I need some advice regarding the following situation:
1. After a tender process, a part of an organisation has entered into a contract for the provision of (certain) services for an 18 month period which expired in July 2014
2. An extension of the contract was evoked for a further 3 months.
3. During the extension period another, larger part of the organisation has negotiatied with a vendor and decided to piggy back on the existing contract and on the Quote stipulated term of 3 years + 2x1
4. In my vendor meeting, it was implied that we are willing to either a) extend the current contract or b) more likely, enter into a new contract altogether. Under these discussions, the vendor will now forward a draft contract.
Given the above situation, I would like to understand what our position is under contract law. I would think that we should have probably gone to the market for another competitive tender given the increased volume in business. Otherwise, given the conversations with the vendor and other parts of the organisation, are we bound by commercial law to enter into a new agreement given the implication?
Any advice would be much appreciated.
Thanks.