Ron Engineering submitted a tender to build a project. They submitted as a tender deposit a certified cheque. The contractor’s employee filed the tender and discovered that their bid was much lower than the next lowest tender due to a miscalculation. The employee contacted the president advising him of this error after the official closing time of 3:00 pm in attempt to get his deposit back. ==Facts==
Issue[]
- Is there a contract completed during the tendering process?
- When is this contract completed?
- What are the conditions of this contract?
Decision[]
Appeal allowed, owner to keep the deposit.
Reasons[]
Generally, calls for tenders are invitations to treat. However, in cases like this where specific language and conditions are used then it becomes a unilateral offer. "Contract A" was accepted by the contractor when he submitted his bid in accordance with the terms, and it states that he has an obligation to enter into "Contract B" – the construction contract. Accepting Contract A binds the contractor to enter into Contract B. The deposit was to ensure the performance of the contractor of its obligations under Contract A, which it failed to live up to.
Ratio[]
Bids at once become irrevocable if filed in conformity with the terms and conditions under which the call for tenders was made, if such terms so provide.