Duhaime's Law Dictionary


Call For Tenders Definition:

A property owner's invitation, sometimes at large, sometimes to a select group, for bids to complete a particular project.

In Double N Earthmovers, Canada's Supreme Court stated:

"A call for tenders involves a party’s (often referred to as the owner) requesting the submission of bids to complete a particular project.

"Where the parties intend to initiate contractual relations, a submission in response to a call for tenders can lead to the formation of Contract A. The call for tenders is the offer by the owner to consider the bids it receives and to enter into the contract to complete the project where a bid is accepted. A bidder accepts that offer by submitting a bid that complies with the requirements set out in the tender documents.

"The contractual rights and obligations of the parties to Contract A are governed by the express or implied terms of the tender documents.

"A bid also constitutes an offer to enter into Contract B. This is the contract to complete the project for which bids were sought. Where a bid is accepted, the terms of the tender and bid documents become the terms and conditions of Contract B."

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