A Chinese engineering contracting company asks an Italian supplier to make an offer for a batch...

 

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A Chinese engineering contracting company asks an Italian supplier to make an offer for a batch of steel on Oct. 3 by fax. The fax states: we require that this offer is to calculate the specialist of a building and determine whether or not to participate in bidding; we must tender on Oct. 15 and the bid opening date is on Oct. 31. The Italian supplier cables the Chinese company the offer on Oct. 5 for the above mentioned steel. The Chinese company calculates the price on this offer and submits the tender on Oct. 15. The Italian supplier sends a fax to revoke his offer on Oct. 20, because of the rising price of the steel market. The Chinese company replies immediately that they don't agree to revoke the offer. So both sides make a dispute on the revocation of the offer. Then on Oct. 31, the Chinese company bids successfully, and faxes the Italian supplier to accept the Oct. 5 offer. But the Italian supplier insists that they have cancelled the offer on Oct. 20. The contract is not established. Finally both sides submit the dispute to arbitration. Question: if you are the arbitrator, how to make an arbitration? A Chinese engineering contracting company asks an Italian supplier to make an offer for a batch of steel on Oct. 3 by fax. The fax states: we require that this offer is to calculate the specialist of a building and determine whether or not to participate in bidding; we must tender on Oct. 15 and the bid opening date is on Oct. 31. The Italian supplier cables the Chinese company the offer on Oct. 5 for the above mentioned steel. The Chinese company calculates the price on this offer and submits the tender on Oct. 15. The Italian supplier sends a fax to revoke his offer on Oct. 20, because of the rising price of the steel market. The Chinese company replies immediately that they don't agree to revoke the offer. So both sides make a dispute on the revocation of the offer. Then on Oct. 31, the Chinese company bids successfully, and faxes the Italian supplier to accept the Oct. 5 offer. But the Italian supplier insists that they have cancelled the offer on Oct. 20. The contract is not established. Finally both sides submit the dispute to arbitration. Question: if you are the arbitrator, how to make an arbitration?

Answer rating: 100% (QA)

As the arbitrator in this dispute between the Chinese engineering contracting company and the Italian supplier it is important to carefully consider t... View the full answer