Gaastra v. Village of Fairwater

The question is whether acceptance of a bid by a municipality is a precondition to forfeiture of a bidder’s deposit. We hold that acceptance of the bid is a prerequisite to forfeiture.

In March 1972 the defendant village of Fairwater advertised in a trade paper soliciting bids for construction of sanitary sewers, lift stations, a waste stabilization pond and other items which were part of a pollution prevention project for the Grand River. The advertisement required a bid deposit as follows:

“Proposals shall be accompanied by a Certified Check or Bid Bond payable to the Village of Fairwater in…