Perera and Others v. Hon. Tilak Marapona, Minister of Transport – sllr 2003 volume 3 page 151

In Perera and Others v. Hon. Tilak Marapona, Minister of Transport and others, the court addressed whether a particular document (P6) constituted a binding written agreement or was merely an invitation to treat, alongside determining the validity of a letter of credit as a form of payment in the privatization of the Colombo Metropolitan Bus Company Limited. The petitioners, as employees and shareholders, challenged an extension of time for payment granted to a winning bidder in the sale of a 39% equity stake. It was held that P6 was a request for proposals and did not create binding contractual obligations. It was further determined that, although a letter of credit did not constitute a bank draft, it represented an absolute and irrevocable commitment by the issuing bank, being effectively