Hospital materials managers need to be aware of actions that constitute legal acceptance.

A hospital invited bids for building materials for a hospital construction project. A supplier submitted a bid which asked the hospital to sign and return a trade association form contract. The hospital didn't return the form but used the supplier's bid as part of the general contract for the entire project and notified the supplier and the general contractor. Later, the supplier submitted a higher bid for the same material contending that the hospital hadn't accepted the first bid as they hadn't followed the instructions. The hospital materials manager feels that the bid was properly accepted. In this dialogue, Dr. Decker reviews the legal issues involved in the different ways of accepting an offer.