In Martel Building Ltd. v. Canada, what did the Supreme Court of Canada decide?
A) There is no requirement that bidders be treated fairly, as caveat emptor applies.
B) In a call for tenders, there can be no discretion.
C) A call for tenders is an invitation to treat which carries with it no legal status.
D) In a call for tenders, standard form contracts must always be used.
E) A call to tender is an offer to contract and a binding contract may arise when a bid is submitted.

Question

Quizplus · Accepted Answer

The Supreme Court of Canada decided that a call to tender is an offer to contract and a binding contract may arise when a bid is submitted. This means that bidders must be treated fairly and that discretion cannot be exercised in the evaluation of bids. It also means that a call to tender has legal status and can form a binding agreement between the parties.