Significant Developments in the Canadian Law of Tenders
![handle is hein.journals/canadbus18 and id is 400 raw text is: SIGNIFICANT DEVELOPMENTS IN THE CANADIAN LAW
OF TENDERS
Gail Henley*
CONTENTS
1. Introduction ........................................................................ 382
2. Canadian Law of Tenders ........................................................ 384
(1) Prior to Ron Engineering ................................................... 384
(2) Ron Engineering ............................................................. 384
(3) Post-Ron Engineering ....................................................... 387
(a) The Policy Underlying Ron Engineering .......................... 387
(b) Extending Ron Engineering to Subcontractors .................. 388
(c) Attempts at a Redefinition of Contract A ........................ 394
3. A m erican Law of Tenders ....................................................... 395
(1) Jam es Baird v. G im bel ...................................................... 395
(2) D rennan v. Star Paving ..................................................... 396
(3) L oranger ....................................................................... 398
4. Prospects for Future Development in Tender Law ......................... 402
(1) The Doctrine of Good Faith and Fair Dealing ......................... 402
(2) The Doctrine of Unconscionability ...................................... 405
(3) The Claim of Unjust Enrichment ......................................... 408
5. C onclusion .......................................................................... 410
1. Introduction
When the famous contract A-contract B principle was
enunciated by the Supreme Court of Canada in 1981 in Ron
Engineering,t it was roundly criticized by academics for its refor-
mulation of common law doctrine. Most of the legal literature
concerning the case has centered on the ostensibly harsh results
Ms Henley is a recent graduate of the University of Toronto's Faculty of Law. This article
was written in fulfillment of the requirements of the McCarthy Tdtrault summer
fellowship held by the author in the Summer of 1990. The author gratefully acknowledges
the assistance of Professor J. Ziegel and the editorial staff of the Canadian Business Law
Journal in preparing the article for publication.
Ron Engineering & Construction Eastern Ltd. v. Ont., [1981] 1 S.C.R. 111, 119 D.L.R.
(3d) 267.](ViewImageLocal?handle=hein.journals/canadbus18&div=28&collection=&method=preview&ext=.png&size=3)
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Significant Developments in the Canadian Law of Tenders
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