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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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