The Case Of Canada Law

1670 Words7 Pages
1. Introduction Since almost past two decade the Courts of Canada, have been very firm while dealing with any case related to contracts or tenders, especially with owners and contractors, who use bidding activities unethically. In order to bring some order in the contract tendering system, the Canadian Court offered in awarding against the damages to the contractor in such unethical practices by several ways such as bid shopping and disclosure of the criteria of bidding to the bidders. The transformation in the law system came after the much popular case of Canada Law Court of Ron Engineering v/s Ontario. In the case due to the error committed in the calculation of the tender quotation, the tender went to another company and later when the…show more content…
On the other side, owners had the risk of losing the stated prices at the time when offers were withdrawn. Ron Engineering transformed the unfettered game of tendering by establishing certain standardized rules from a clever conception—a whole new structure of contract. 1.2 Post Ron Engineering Contracts After the case of Ron Engineering, many transformations took place in the contracting laws of tendering. The contracts were given a brand new structuring and implementation which brought more transparency and reliability. The court established Contract A, which had be present prior to the construction contract—which was known as Contract B—where all the parties had beforehand thought was the exclusive contract concerned in the tendering process. Whenever an owner calls for bids, it proposes to enter automatically into a bidding contract i.e., Contract A. The contract automatically becomes a lawfully enforceable agreement as soon as the bidder submits its bid. In case the bidder’s offer is acknowledged, the owner and the bidder both then are contractually compelled by the tendering contract to come into the production contract i.e., Contract B. The rule carries the terms of the tendering contract of Contract A. The Court entails some of the norms whereas some are established and found in the
Open Document