The awarded tender would cost the local government twenty per cent less, compared to giving it Cosmos. Since, Cosmos offered to deliver all the office stationary to the Local government at a cost of T sh. 1 billion. Lee Firm approached the local government with the counter offer of supplying the same stationary at a cost of T sh. 800,000,000. This would save T sh. 200,000,000 for the local government. Over this, Lee Firm was also working on a mechanism of exchange program, where they will employ new government entrant employees for a period of two years. In the view of cost and additional benefits, the Governor decided, through a joint departmental meeting with procurement permanent secretary to revoke the Cosmos tender. They reasoned that both of them applied and that Lee Firm emerged number two, the negotiations conveyed electronically and there was no paper signed. Subsequently, they revoked the contract. There is law of contract that guides execution of contracts and revocation. It is in this view that the paper would make specific points to this revoked contract from a legal perspective.
It is true that the cyber law lack proper legislation and that the entered contract was not in paper. However, there are procedures of revoking signed contract. On this, a party breached the contract in law. Both Cosmos and Lee did online application, the Local Authority advertisement was on the internet as well. On this, the electronic conveyance is irrelevant reason for the contract cancellation. In view of the above and the powers bestowed in the courts, Cosmos through its attorney can press for damages on contract revocation. Since the government only, provide for a generalization on cyber laws, the Law of Contract Act governs all contracts.
Legally, Cosmos can pursue the damages guided by the assumption that there exist a mismatch between the cyber contracts Act and terms, conditions and framework for the protection of the parties involved. There are no specific legislations on cyber contracts, but there is general guidance provided to protect the parties. These contracts still fall within the Law of Contract Act. The courts of law are free to develop principles and charge the Local Government for breach of contract. Consequently, the local government will pay Cosmos for all the damages and the cost of the whole contract as in the initial contract.
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