TENDERING PROBLEMS

Abstract

This article is concerned with the legal issues arising from the procedure of tendering for contracts. It is divided into two sections, one dealing with invitations to tender, the other with tenders themselves. Consideration of invitations to tender makes it necessary to discuss the older English authorities and more recent Canadian cases, especially the decision of the Supreme Court of Canada in the Ron Engineering case, with its analysis of the situation in terms of "unilateral" and "collateral" contracts. To elucidate the confusion surrounding the whole subject, the process of tendering is then analysed by reference to the nature of tenders, irrevocable tenders, the special problems of tenders for subcontracts, referential bids, and the problem of mistake in contracting. The article concludes by setting out the matters which require resolution despite the existing English and Canadian case-law.