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

Issue:

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

Decision:

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