Harvela v Royal trust of Canda (1985), Facts and Importantce

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This case is concerned with the tenders in the offer and acceptance chapter of contract law

Facts of Harvela v Royal trust of Canada

A Company was selling shares of a company. Two people were invited and told that the one who makes the highest bid will take the shares. As the first one made a bid of $2,175,000 and the second bid was $2,100,000 with a referential bid of $101,000

As the Company accepted the second bid, but the shares was going to be selected on a fixed term. And the fixed amount of the second bid was lower than the first bid

The First bidder sued the Company for shares


Whether the first bidder had made the highest bid and was the referential bid by the second bidder in-valid.


The Decision came in the favour of the first bidder and the court said that the referential bid made by the second bidder was irrelevant. They said that a unilateral offer was made by the company, which was accepted by the first bidder and the second bid was in-valid.

Important Point of Harvela v Royal Trust of Canada

This case is authority for the rule

Ads for tenders are Invitation to Treat (ITT) , Offer is made when different tenders are submitted and when one of them is chosen the acceptance takes place

Related Readings

Barry v Davies

BCA v Wright

Harris v Nickerson

Blackpool v Blacpool