The municipality issued a call for tenders for equipment and operators, specifying that all equipment must be 1980 or newer.
The successful bidder submitted a bid promising 1980 equipment, but the serial numbers provided corresponded to older equipment.
An unsuccessful bidder informed the municipality of this discrepancy before the contract was awarded, but the municipality did not investigate and awarded the contract to the successful bidder.
The unsuccessful bidder sued the municipality for breach of Contract A. The Supreme Court of Canada dismissed the appeal, holding that the successful bid was compliant on its face, the municipality had no duty to investigate the bid, and the municipality's obligations under Contract A ended once Contract B was formed.
