LAW OF OBLIGATION ACT, PART 10, CHAPTER 49, DIVISION 2

Division 2

Competition 

  • 1009. Conditions of competition

(1) In the event of a public promise to pay a reward for the best performance of a specific act (a competition), the object of the competition, the manner of and term for the performance of the act or the tender, the term and procedure for the selection of the best act or tender, and the person who promises to pay the reward (the organiser of the competition) and other circumstances necessary for the conduct of the competition shall be made known in a reasonable manner.

(2) The organiser of a competition may decline to conduct the competition or amend the announced conditions of the competition only if this is prescribed in the conditions of the competition and if the fact of declining to conduct the competition or amending the conditions thereof is announced in the same manner as the competition or the conditions thereof.

(3) If the organiser of a competition declines to conduct the competition or amends the conditions thereof, the organiser shall compensate all reasonable costs incurred in good faith by other persons based on the conditions of the competition, unless the organiser proves that the persons who incurred the costs could not have performed or would not have been able to perform the act which was the object of the competition.

  • 1010. Withdrawal and amendment of tenders

(1) A tenderer may withdraw a tender until the expiry of the term for the making of tenders as specified in the conditions of the competition, unless otherwise prescribed by the conditions of the competition.

(2) A tenderer may amend or supplement the tender only within the term during which the tender may be withdrawn pursuant to the provisions of subsection (1) of this section, and only to the extent prescribed in the conditions of the competition.

  • 1011. Compensation of costs related to tendering

A tenderer or person who performs an act has the right to demand that costs incurred due to participation in the competition be compensated if such possibility is prescribed by law or in the conditions of the competition.

  • 1012. Decision made concerning competition

(1) A decision as to whether an act or tender conforms to the conditions of the competition and, if there is more than one act or tender, regarding which of the acts or tenders should be preferred shall be made by the person specified in the conditions of the competition or, if there is no such person, by the organiser of the competition.

(2) A decision made regarding a competition is binding on the persons concerned and is not contestable in court. The provisions of this subsection do not preclude or restrict the right to make a claim against the organiser of a competition for compensation of damages arising from violation of the conditions of the competition.

(3) If the conditions of a competition do not specify the manner for selecting the best tender, the organiser of the competition has the right to declare the most suitable tender in the opinion of the organiser to be the best.

(4) A tender which is made or an act which is performed after the expiry of the term specified in the conditions of the competition shall not be taken into account in the competition.

(5) The organiser of a competition may reject all tenders if such a possibility is prescribed in the conditions of the competition.

(6) A decision concerning a competition shall be made and the tenderers or the persons who performed an act shall be informed thereof within the term prescribed in the conditions of the competition.

  • 1013. Requirement to transfer rights

The organiser of a competition may demand the transfer of copyright, another similar right or the right of ownership to a creation or the result of other work presented by the person who performed an act or by a tenderer only if such obligation to transfer is prescribed in the conditions of the competition.

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