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87 Can. B. Rev. 1 (2008)

handle is hein.journals/canbarev87 and id is 1 raw text is: Vol.87 2008 No. MISTAKEN BIDS AND UNILATERAL MISTAKEN ASSUMPTIONS, A NEW SOLUTION FOR AN OLD PROBLEM? John D. McCamus* The two-contract analysis of the Supreme Court of Canada's decision in Ron Engineering has created a very substantial obstacle to relief for mistaken bidders who discover calculation errors upon the opening of the bids. Nonetheless, Canadian courts are inclined to narrowly distinguish that analysis and grant relief in cases of extreme error in order to avoid unduly onerous penalties for mistaken bidders and large unearned windfalls for issuers of invitations to bid. This article argues that recent decisions of Canadian appellate courts articulating a rule which would excuse bidders where the burden imposed by the miscalculation is so grossly disproportionate that enforcement of the mistaken bid would be unconscionable represent a more satisfactory and elegant solution to the problem of mistaken bids and represents a useful incremental change in the law of contractual mistake. L'analyse de la Cour supreme portant sur les < deux contrats > dans l'arret Ron Engineering a cr6d un obstacle important pour les soumissionnaires qui se rendent compte d'une erreur de calcul i la date d'ouverture des soumissions et qui sollicitent une rdparation. Nanmoins, les tribunaux canadiens sont portds i distinguer cette analyse, de fagon restrictive, et d'accorder un dddommagement dans les cas d'erreur tr~s * Osgoode Hall Law School, York University. I am grateful to Stephanie Ben-Ishai and Joost Blom for their comments on an early draft. THE CANADIAN BAR REVIEW LA REVUE DU BARREAU CANADIEN

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