The Ontario Court of Appeal recently dealt with Tenders for construction contracts. In this case, the tender documents required the bidders to obtain performance bonds "upon acceptance" of a bid. The Court of Appeal held that the successful bidder did not have to provide a performance bond with its bid, but only after acceptance of its bid.
This decision is a reminder of the difference between the contract formed by the tender process (Contract A) and the contract between the owner and a bidder arising from the tender process (Contract B).
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