Acceptance of a tender by a local government council creates a binding agreement even where the parties contemplate execution of a formal licence agreement, where the tender specification requires payment from the date of occupation notwithstanding non-execution of the licence. A note on a draft licence agreement permitting variation 'based on legal advice and the tenders submitted and accepted' does not authorise substantive departure from the accepted tender terms. Under the Local Government (Tendering) Regulation, a council must ensure that every contract entered into as a result of an accepted tender is in accordance with the tender.
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