Question: In the Crown vs. Ron Engineering and Construction (1981), Ron Engineering and Construction submitted a bid to the Ontario government for a construction project along
In the Crown vs. Ron Engineering and Construction (1981), Ron Engineering and Construction submitted a bid to the Ontario government for a construction project along with a $150,000 bid bond. The employee who dropped the bid off, stayed around for the opening of the tenders. He was immediately concerned to find that his company was $600,000 lower than the next nearest bidder. He informed his superior immediately. His superior, a principal with Ron, immediately contacted the owner of the future building (a civil servant) requesting that he be allowed to remove his bid owing to a mistake. The owner refused. Ron refused to sign the contract. The owner kept the bid bond. Ron sued. The owner on behalf of the government counter claimed for the difference between Rons bid and the bid that they ultimately had to select. When it first went to trial the owner was allowed to keep the bid bond. Ron appealed to a higher court. The appeal overturned this allowing Ron to receive their bond back. The owner then appealed to the Supreme Court of Canada. Did Ron Engineering get to keep their bid bond finally?
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A. No. The judges referenced the Wilchar case. The mistake was deemed reasonably similar enough to the prospect of leaving a sheet out of the bid documents and as such the tender offer was void.
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B. No. The judges decided that Contract A was entered into when Ron responded to a call for bids and Contract B was entered into when they signed on the line to execute the workwhich they did not. Bid bonds only refer to Contract A which exists at the time of submission.
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C. Yes. Contract B was never entered into.
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D. Yes. In the end this was seen a willful case of the owner trying to take advantage of Ron. Contract A prevailed
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