Moot Court 1 Group 6

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GROUP ASSIGNMENT

Course LAW102 - Business Law and Ethics Fundamentals

Lecturer Tran Thi Mai Sau

Class MKT17B01

Group 6

Assignment Title Moot Court 1

GROUP INFORMATION

Name Roll Number

Nguyễn Thị Hoài Vân DS170410

Nguyễn Thị Thuý Nga DS170415

Trịnh Thị Thảo Vân DS170565

Nguyễn Lê Khánh Huyền DS170417

Lê Thị Quỳnh Như DS170411

Bùi Thanh Thương DS170409

I. Defendant States

Your Honour, esteemed members of the court

I stand before you today as the defendant in the Belle River Community Arena case. My
name is Nguyen Le Khanh Huyen, I represent the Water Resources Committee. Responsible
for developing bidding documents, evaluating the capacity of brass contractors, selecting
brass contractors, and supervising project construction.

In this matter, we believe that the judgment of the First Instance Court is erroneous. We have
the right to retain the deposit by the provisions of "Information for Bidders". Retaining the
deposit in this case is completely consistent with the law and business ethics. We reserve the
right to protect our interests and ensure fairness in the bidding process.

We humbly request the court's impartial consideration of the evidence and arguments that we
will present, underscoring our unwavering dedication to the safety of the public and strict
adherence to regulatory standards.
II. The defendant's lawyer presented
- Introduction:

May it please the court,

My name is Trinh Thi Thao Van and besides is Nguyen Thi Thuy Nga, and we have the honor
of representing appellants in this case, referenced as [1981] 1 S.C.R. 111, 13 B.L.R. 72, 119
D.L.R. (3d) 267, 35 N.R. 40

- Case Overview:

+ Background:

This case revolves around a dispute regarding: A contractor submitted a bid and a deposit of
USD 150,000 to the Ontario Water Commission. The terms stated that if the bid was
withdrawn before being reviewed, the commission could retain the deposit. However, before
the review, the contractor discovered errors in the bid and decided to withdraw it.
Consequently, the Ontario Water Commission declared its right to retain the deposit. The key
issues we are addressing today include the petition of the appellant:
1. The appeal should be accepted because, in the bidding documents, there is no
provision protecting the contractor when the investor fails to comply with the
contract, causing a disadvantage to the contractor.
2. The bidding process and contract closure by investors
3. Why can't participants withdraw their deposits after bidding opens?

+ Facts:

To provide context, allow me to summarize the essential facts of the case:


- On 4th July of 1972, Investors organize bidding calls. Contractors have submitted bids and
deposited $150k with the investor under the condition that after completing the contract, the
deposit will be refunded along with a payment bond and performance bond. After opening
the bids, participants discovered an issue - $750,058 was overlooked in the total bid amount.
Therefore, the bidding participant wants to withdraw the bid documents along with the
deposit. However, the bidding invitation states that if the bid documents are withdrawn, or the
agreement is not fulfilled within a certain period, the committee may retain the deposit. The
contractor offered to withdraw the bid without penalty due to the discovery of errors in the
bid documents that the offer was not accepted.
- The appellants, Her Majesty The Queen in right of Ontario and the Water Resources
Commission, hired engineers to estimate the project cost. Upon receiving notice of an error
in the bid from the contractor, the owner sent a construction contract for signature, but the
contractor refused. The owner decided to retain the deposit and consider the bid of the second
lowest bidder.
- Closing:

Thank you, Your Honor, for your time and consideration. We are confident that the facts of
this case and the applicable law will lead to a just and favorable outcome for Her Majesty
The Queen in right of Ontario and the Water Resources Commission.

II. Defendant's lawyer defends


1. Court information

The Defendant, Her Majesty The Queen in Right of Ontario and the Water Resources
Commission
The Plaintiff, Ron Engineering & Construction (Eastern) Ltd.

Introduction:

Your Honour, B. Johnston, Q.C., and M. Fleishman, a representative for the Defendant in this
matter. We submit that the appeal was not capable of being accepted and the decision of the
trial judge was upheld. The Plaintiff’s claim for the return of the tender deposit is without
merit and contradicts established principles of Canadian contract law.

Argument:

The Plaintiff's argument hinges on the notion that their unilateral mistake renders the entire
tender process void, allowing them to reclaim their deposit despite the clear terms outlined in
the tender documents. We respectfully disagree.

2. Existence of Contract A:
The Supreme Court of Canada's decision in this very case established the existence of a
unilateral contract, referred to as "Contract A," which arose upon the submission of the
tender.
This contract included the Plaintiff’s irrevocable offer, binding them to the submitted price
for the specified period.
The tender deposit served as consideration for the irrevocability of this offer, as confirmed by
Estey J. in the Supreme Court’s ruling.

3. Mistake Not Affecting Contract A:


The Plaintiff’s calculation error, while regrettable, does not negate Contract A's formation or
its terms.
The Plaintiff intended to submit the tender in the exact form received by the Defendant.
The error was internal to the Plaintiff’s bidding process and not apparent on the tender's face,
making it a latent and not a patent mistake.
The case law is clear: a unilateral mistake does not automatically invalidate a contract,
particularly where the other party was unaware of the error.

4. Belle River Distinction:


The Plaintiff's reliance on Belle River Community Arena Inc. v. W.J.C. Kaufmann Co. Ltd. is
misplaced.
In Belle River, the withdrawal occurred before any acceptance, unlike the present case where
the Plaintiff attempted to withdraw after the tender opening.
Further, Belle River dealt with a mistake affecting a fundamental term of the contract,
whereas here, the error solely concerned the calculation of the final bid amount.

5. Forfeiture Clause Enforceable:


The "Information for Tenderers" clearly outlines the consequences of failing to execute the
construction contract within the stipulated time frame.
The Plaintiff’s argument regarding the blank completion date is a red herring. The contract
incorporated the Plaintiff's proposed 90-week timeframe, and any omission could have been
easily rectified by the Plaintiff during the execution process.

6. Integrity of the Bidding System:


Allowing Plaintiff to reclaim their deposit based solely on their internal error would
undermine the integrity of the tendering process.
Contractors would be incentivized to submit artificially low bids, knowing they could later
retract their offers citing errors, thereby gaining an unfair advantage.

Evidence:

We refer to the submitted tender documents, specifically the "Information for Tenderers,"
which clearly outlines the tender deposit requirements and consequences of failing to execute
the contract.
We also refer to Plaintiff’s internal documents and communications, highlighting the intended
submission of the bid in the form received by Defendant.

Canadian Law Provisions:

Contract Law Principles: Canadian contract law recognizes the formation of a binding
contract upon acceptance of an offer, even in cases of unilateral mistake where the mistake is
not known to the other party.

Conclusion:

The Plaintiff's attempt to retract their offer and reclaim the tender deposit contradicts
established Canadian contract law and the principles of fairness inherent in the tendering
process. Defendant acted in good faith, relying on Plaintiff's submitted bid and the terms
outlined in the tender documents. We urge the Court to uphold the trial judge's decision and
dismiss the appeal with costs.
Thank you, Your Honour.

Questions for The Plaintiff:

1. Why did you fail to include the $750,058 in your initial bid calculation?
2. Why did you choose to send a telex requesting withdrawal "without penalty" instead
of stating outright that you had made a mistake and couldn't fulfill the bid?
3. Did you consider the possibility that the owner might accept your bid despite your
notice of the error?
4. Given the circumstances, why did you refuse to sign the construction contract as
presented by the owner?
5. Do you believe that the owner's actions in accepting your bid and subsequently
attempting to forfeit your deposit were fair and reasonable?

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