Under the common law of Canada, when a buyer issues a Request for Proposals or other solicitation document (RFX) regarding the purchase of goods, services or construction, the RFX may be viewed as an offer to each vendor to enter a bid contract, called 'Contract A' by the courts.
Depending largely on the words in the documents at play, a vendor may be judged to accept the buyer's terms by submitting a proposal. In this way, Contract A can be created with many vendors.
Later, the buyer may be in a position to snap-up the winning bid, cementing a performance contract, called 'Contract B'. Thus, legally binding obligations can erupt abruptly, with no negotiations.
Buyers, do you draft your RFXs with the same rigour you'd bring to drafting any other contractual document? Did you know we can rework your RFXs to avoid premature contractual relations, onerous process obligations, or unlimited liability situations?
Bidders, did you realize you could be obliged to perform before signing a formal contract, maybe without ever signing one? Are you making informed decisions before preparing proposals? Are you taking tactical steps to negotiate a better deal?