The respondent invited tenders for a construction project and awarded the contract to the lowest bidder, whose bid was non-compliant.
The tender documents included a privilege clause stating that the lowest or any tender would not necessarily be accepted.
The appellant, who submitted the lowest compliant bid, sued for breach of contract.
The Supreme Court of Canada held that a Contract A arose upon the submission of the tender, and it contained an implied term that only compliant bids would be accepted.
The privilege clause did not override this implied term, though it did allow the owner to choose a compliant bid other than the lowest one.
The appeal was allowed and damages awarded to the appellant.
