# What Is the Difference between a Binding RFP and a Non-Binding RFP in Canada? ▴ Question

**Published:** 2025-08-07
**Categories:** Question

---

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![A teal-colored digital asset derivative contract unit, representing an atomic trade, rests precisely on a textured, angled institutional trading platform. This suggests high-fidelity execution and optimized market microstructure for private quotation block trades within a secure Prime RFQ environment, minimizing slippage](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-engine-optimization.jpg)

## Concept

The distinction between a binding and a non-binding Request for Proposal (RFP) in Canada is a foundational element of [procurement law](https://prime.greeks.live/area/procurement-law/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), shaping the strategic interaction between purchasers and suppliers. Understanding this difference is not an academic exercise; it is a critical operational imperative. The legal framework, largely shaped by the landmark Supreme Court of Canada decision in _R. v. [Ron Engineering](https://prime.greeks.live/area/ron-engineering/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) & Construction (Eastern) Ltd._, establishes a two-contract system known as Contract A and Contract B. This structure dictates the rights and obligations of all parties involved in a formal bidding process.

A [binding RFP](https://prime.greeks.live/area/binding-rfp/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), in the Canadian legal context, initiates the formation of “Contract A” with each compliant bidder that submits a proposal. This preliminary contract governs the bidding process itself. It establishes an irrevocable commitment from the bidder for a specified period and binds the purchaser to the terms of the RFP, including the evaluation criteria and the [duty of fairness](https://prime.greeks.live/area/duty-of-fairness/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) to all participants. The subsequent award of the project to the successful proponent leads to the formation of “Contract B,” which is the performance contract for the actual goods or services.

The creation of [Contract A](https://prime.greeks.live/area/contract-a/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) is not merely a formality; it imposes significant legal duties on the purchaser, who must adhere strictly to the rules laid out in the RFP documents. Any deviation can lead to legal challenges from aggrieved bidders.

> The core of the Canadian procurement model is the Contract A/Contract B framework, which transforms a compliant bid into a binding process contract.

Conversely, a [non-binding RFP](https://prime.greeks.live/area/non-binding-rfp/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) is explicitly structured to prevent the formation of Contract A. This approach treats the RFP as an invitation to negotiate, where proposals are not irrevocable offers but rather expressions of interest that form a basis for discussion. The purchaser retains a high degree of flexibility, with no legal obligation to award a contract or adhere to a rigid evaluation process. This method is often preferred when the project scope is not precisely defined, when innovative solutions are sought, or when the purchaser wishes to engage in negotiations with one or more proponents to refine the terms of the final agreement. The language used in the RFP document is paramount; clear and unambiguous terms are required to signal the intention to create a non-binding process and avoid the legal duties associated with Contract A.

![Abstract geometric forms portray a dark circular digital asset derivative or liquidity pool on a light plane. Sharp lines and a teal surface with a triangular shadow symbolize market microstructure, RFQ protocol execution, and algorithmic trading precision for institutional grade block trades and high-fidelity execution](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-block-execution-microstructure.jpg)

![A sleek Execution Management System diagonally spans segmented Market Microstructure, representing Prime RFQ for Institutional Grade Digital Asset Derivatives. It rests on two distinct Liquidity Pools, one facilitating RFQ Block Trade Price Discovery, the other a Dark Pool for Private Quotation](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-execution-optimizing-rfq-protocols-across-segmented-liquidity-pools.jpg)

## Strategy

Choosing between a binding and a non-binding procurement framework is a strategic decision with significant consequences for risk management, negotiation leverage, and project outcomes. The selection of a particular RFP model is a function of the project’s specific characteristics and the purchaser’s strategic priorities. A binding RFP is most effective when the requirements are clearly defined, the qualifications of potential suppliers are comparable, and price is a primary determinant.

This rigid structure provides a high degree of transparency and procedural certainty, minimizing the potential for disputes related to fairness in the evaluation process. However, this rigidity can also be a constraint, limiting the purchaser’s ability to consider alternative solutions or negotiate better terms after the submission deadline.

![Abstract depiction of an institutional digital asset derivatives execution system. A central market microstructure wheel supports a Prime RFQ framework, revealing an algorithmic trading engine for high-fidelity execution of multi-leg spreads and block trades via advanced RFQ protocols, optimizing capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-prime-os-rfq-execution-system-1.jpg)

## Framework Selection Matrix

The decision to employ a binding or non-binding RFP can be guided by a systematic evaluation of project and market characteristics. The following table provides a strategic matrix for selecting the appropriate procurement vehicle.

| Factor | Binding RFP (Contract A/B) | Non-Binding RFP |
| --- | --- | --- |

![Symmetrical precision modules around a central hub represent a Principal-led RFQ protocol for institutional digital asset derivatives. This visualizes high-fidelity execution, price discovery, and block trade aggregation within a robust market microstructure, ensuring atomic settlement and capital efficiency via a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/principal-led-digital-asset-rfq-execution-system-microstructure.jpg)

## Strategic Implications of Non-Binding RFPs

The use of non-binding RFPs has become increasingly prevalent as purchasers seek to mitigate the legal risks associated with the Contract A framework. By explicitly disclaiming the intention to create a binding process, purchasers gain several strategic advantages. They can engage in concurrent negotiations, entertain novel solutions that may not strictly conform to the initial request, and maintain the flexibility to cancel the procurement at any stage without facing legal repercussions for breach of a process contract. This approach, however, requires a different set of management skills, emphasizing negotiation and relationship management over strict procedural compliance.

> A non-binding RFP transforms the procurement from a rigid competition into a structured negotiation, prioritizing flexibility over procedural formality.

Proponents responding to a non-binding RFP must also adjust their strategy. Since their proposals are not irrevocable, they retain the ability to withdraw or modify their offers. This creates a more dynamic and competitive environment where the terms of the engagement are subject to change until a final contract is executed. The following list outlines key strategic considerations for suppliers in a non-binding process:

- **Focus on Value Proposition** ▴ Since price may not be the sole determinant, proposals should emphasize the unique value and innovative aspects of the offered solution.

- **Prepare for Negotiation** ▴ The initial proposal should be viewed as the opening position in a negotiation, with an expectation of further discussion and refinement.

- **Understand the Purchaser’s Discretion** ▴ Proponents must recognize that the purchaser has broad discretion and is not bound to award the contract to any party.

![A multifaceted, luminous abstract structure against a dark void, symbolizing institutional digital asset derivatives market microstructure. Its sharp, reflective surfaces embody high-fidelity execution, RFQ protocol efficiency, and precise price discovery](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-trading-protocol-architecture-optimizing-high-fidelity-rfq-execution-and-latent-liquidity-discovery.jpg)

![Abstract, layered spheres symbolize complex market microstructure and liquidity pools. A central reflective conduit represents RFQ protocols enabling block trade execution and precise price discovery for multi-leg spread strategies, ensuring high-fidelity execution within institutional trading of digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-engine-for-high-fidelity.jpg)

## Execution

The effective execution of an RFP, whether binding or non-binding, depends on the precise and unambiguous language used in the procurement documents. The wording of these documents determines the legal nature of the process and establishes the rights and obligations of all participants. A failure to draft these documents with sufficient care can lead to unintended legal consequences, including costly litigation.

![Precision metallic pointers converge on a central blue mechanism. This symbolizes Market Microstructure of Institutional Grade Digital Asset Derivatives, depicting High-Fidelity Execution and Price Discovery via RFQ protocols, ensuring Capital Efficiency and Atomic Settlement for Multi-Leg Spreads](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-for-precision-execution.jpg)

## Drafting a Non-Binding RFP

To ensure an RFP is treated as non-binding, the purchaser must explicitly and consistently disclaim any intention to create a Contract A. This requires the inclusion of specific clauses that leave no doubt as to the nature of the procurement. The following are essential elements to include in a non-binding RFP:

- **Explicit Disclaimer** ▴ A clear statement that the RFP is an invitation to negotiate and not a call for tenders. An example of such a clause is ▴ “This Request for Proposals is not a call for tenders or a request for binding offers, and no contractual or other legal obligations shall arise between the parties as a result of the issuance of this RFP or the submission of any proposal.”

- **No Irrevocable Bids** ▴ The document should state that proposals are not irrevocable and can be withdrawn by the proponent at any time prior to the execution of a formal contract.

- **Negotiation Clause** ▴ A provision that explicitly reserves the right of the purchaser to negotiate with one or more proponents concurrently.

- **[Privilege Clause](https://prime.greeks.live/area/privilege-clause/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite)** ▴ A statement that the purchaser is not obligated to accept the lowest-priced or any proposal and may cancel the process at any time for any reason.

> The legal character of an RFP is determined by its language, not its title; a document labeled “RFP” can still be deemed a binding tender if it contains the hallmarks of a Contract A process.

![A transparent glass sphere rests precisely on a metallic rod, connecting a grey structural element and a dark teal engineered module with a clear lens. This symbolizes atomic settlement of digital asset derivatives via private quotation within a Prime RFQ, showcasing high-fidelity execution and capital efficiency for RFQ protocols and liquidity aggregation](https://options.greeks.live/wp-content/uploads/2025/07/architecting-high-fidelity-execution-for-institutional-digital-asset-derivatives-rfq-protocols-and-systemic-liquidity-aggregation.jpg)

## Comparative Analysis of Key Clauses

The table below compares the typical language and implications of key clauses in binding and non-binding RFPs, providing a practical guide for drafting and interpreting these documents.

| Clause | Binding RFP Language (Implies Contract A) | Non-Binding RFP Language (Avoids Contract A) |
| --- | --- | --- |

Ultimately, the choice and execution of an RFP strategy must be aligned with the organization’s broader objectives. A binding process offers certainty and fairness at the cost of flexibility, while a non-binding process provides adaptability at the expense of procedural formality. The key to successful procurement in Canada lies in understanding the legal framework and making a deliberate, informed choice that best serves the project’s unique requirements.

![A central blue sphere, representing a Liquidity Pool, balances on a white dome, the Prime RFQ. Perpendicular beige and teal arms, embodying RFQ protocols and Multi-Leg Spread strategies, extend to four peripheral blue elements](https://options.greeks.live/wp-content/uploads/2025/07/high-fidelity-digital-asset-derivatives-rfq-protocol-execution-framework.jpg)

## References

- Martel, P. (2021). _A Deep Dive into Canada’s Public Procurement Law_. McCarthy Tétrault.

- MLT Aikins. (2024). _Bidder beware ▴ Important legal considerations for responding to competitive procurements_.

- Alexander Holburn Beaudin + Lang LLP. (2016). _Procurement Legal Basics ▴ Duty of Good Faith in RFPs vs. Tenders_.

- LXM Law. (2020). _Public procurement law in Canada ▴ An overview_.

- Treasury Board of Canada Secretariat. (2002). _Legal Obligations of Public Purchasers_.

- The Queen v. Ron Engineering and Construction (Eastern) Ltd. 1 S.C.R. 111.

![A sleek, bimodal digital asset derivatives execution interface, partially open, revealing a dark, secure internal structure. This symbolizes high-fidelity execution and strategic price discovery via institutional RFQ protocols](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-protocols-price-discovery.jpg)

## Reflection

The decision between a binding and non-binding RFP is more than a procedural choice; it is a reflection of an organization’s operational philosophy. It reveals the degree of control sought versus the level of innovation desired. The legal architecture of [Canadian procurement law](https://prime.greeks.live/area/canadian-procurement-law/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) provides the tools, but the strategic wisdom lies in their application. As you evaluate your own procurement protocols, consider not only the legal implications but also the strategic outcomes you wish to achieve.

The framework you choose will ultimately shape the relationships with your suppliers and the success of your projects. A well-designed procurement system is a strategic asset, enabling an organization to achieve its objectives with precision and efficiency.

![A central rod, symbolizing an RFQ inquiry, links distinct liquidity pools and market makers. A transparent disc, an execution venue, facilitates price discovery](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-rfq-protocol-execution-optimization.jpg)

## Glossary

<a href="https://prime.greeks.live/area/procurement-law/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Abstract system interface on a global data sphere, illustrating a sophisticated RFQ protocol for institutional digital asset derivatives. The glowing circuits represent market microstructure and high-fidelity execution within a Prime RFQ intelligence layer, facilitating price discovery and capital efficiency across liquidity pools](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-protocol-execution-prime-os.jpg)

## Procurement Law

Meaning ▴ Procurement Law defines the regulatory and contractual framework for institutional acquisition of goods and services. </a><a href="https://prime.greeks.live/area/ron-engineering/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A transparent, multi-faceted component, indicative of an RFQ engine's intricate market microstructure logic, emerges from complex FIX Protocol connectivity. Its sharp edges signify high-fidelity execution and price discovery precision for institutional digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-optimized-for-best-execution.jpg)

## Ron Engineering

Meaning ▴ Ron Engineering designates a proprietary algorithmic framework for dynamic optimization of execution and risk parameters within institutional digital asset derivatives. </a><a href="https://prime.greeks.live/area/duty-of-fairness/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, metallic multi-lens device with glowing blue apertures symbolizes an advanced RFQ protocol engine. Its precision optics enable real-time market microstructure analysis and high-fidelity execution, facilitating automated price discovery and aggregated inquiry within a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-engine-intelligence-layer.jpg)

## Duty of Fairness

Meaning ▴ The Duty of Fairness represents a foundational systemic obligation within a digital asset trading venue or protocol, ensuring equitable treatment of all eligible participants. </a><a href="https://prime.greeks.live/area/binding-rfp/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Abstract RFQ engine, transparent blades symbolize multi-leg spread execution and high-fidelity price discovery. The central hub aggregates deep liquidity pools](https://options.greeks.live/wp-content/uploads/2025/07/principal-rfq-engine-for-crypto-derivatives-high-fidelity-block-trade.jpg)

## Binding Rfp

Meaning ▴ A Binding Request for Proposal (RFP) defines a formal electronic communication protocol through which a liquidity taker solicits firm, executable price quotes from multiple liquidity providers for a specified digital asset derivative instrument and quantity. </a><a href="https://prime.greeks.live/area/contract-a/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Three metallic, circular mechanisms represent a calibrated system for institutional-grade digital asset derivatives trading. The central dial signifies price discovery and algorithmic precision within RFQ protocols](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-and-execution-precision.jpg)

## Contract A

Meaning ▴ Contract A defines a standardized, digitally-native forward agreement for a specific digital asset. </a><a href="https://prime.greeks.live/area/non-binding-rfp/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek green probe, symbolizing a precise RFQ protocol, engages a dark, textured execution venue, representing a digital asset derivatives liquidity pool. This signifies institutional-grade price discovery and high-fidelity execution through an advanced Prime RFQ, minimizing slippage and optimizing capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/digital-asset-derivatives-rfq-protocol-integration-for-high-fidelity-execution-and-institutional-liquidity-aggregation-on-prime-os.jpg)

## Non-Binding Rfp

Meaning ▴ A Non-Binding Request for Proposal (RFP) is a formal mechanism for institutions to solicit indicative pricing and liquidity from diverse providers for specific digital asset derivatives. </a><a href="https://prime.greeks.live/area/privilege-clause/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![An abstract digital interface features a dark circular screen with two luminous dots, one teal and one grey, symbolizing active and pending private quotation statuses within an RFQ protocol. Below, sharp parallel lines in black, beige, and grey delineate distinct liquidity pools and execution pathways for multi-leg spread strategies, reflecting market microstructure and high-fidelity execution for institutional grade digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-protocol-displaying-multi-leg-execution-status-and-optimal-liquidity-pathways.jpg)

## Privilege Clause

Meaning ▴ The Privilege Clause designates a specific, pre-negotiated operational allowance or enhanced access right granted to an institutional participant within a digital asset derivatives trading system. </a><a href="https://prime.greeks.live/area/canadian-procurement-law/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Abstract geometric representation of an institutional RFQ protocol for digital asset derivatives. Two distinct segments symbolize cross-market liquidity pools and order book dynamics](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-protocol-2.jpg)

## Canadian Procurement Law

Meaning ▴ Canadian Procurement Law defines the comprehensive regulatory framework governing the acquisition of goods, services, and construction by federal government entities in Canada. </a>

**Tags:** [Legal Disclaimer](https://options.greeks.live/area/legal-disclaimer/), [Contract A](https://options.greeks.live/area/contract-a/), [Privilege Clause](https://options.greeks.live/area/privilege-clause/), [Irrevocable Bid](https://options.greeks.live/area/irrevocable-bid/), [Canadian Procurement Law](https://options.greeks.live/area/canadian-procurement-law/), [Ron Engineering](https://options.greeks.live/area/ron-engineering/)	

## Discover More

- 
### [What Are the Key Legal Differences between a Binding Rfp and a Formal Tender?](https://options.greeks.live/question/what-are-the-key-legal-differences-between-a-binding-rfp-and-a-formal-tender/)
![Abstract system interface on a global data sphere, illustrating a sophisticated RFQ protocol for institutional digital asset derivatives. The glowing circuits represent market microstructure and high-fidelity execution within a Prime RFQ intelligence layer, facilitating price discovery and capital efficiency across liquidity pools.](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-protocol-execution-prime-os.jpg)

A formal tender creates a binding process contract upon bid submission, while a binding RFP's legal force stems from its explicit terms, preserving negotiation flexibility.

- 
### [What Are the Legal Risks of Not Including a Comprehensive Privilege Clause in an Rfp?](https://options.greeks.live/question/what-are-the-legal-risks-of-not-including-a-comprehensive-privilege-clause-in-an-rfp/)
![A transparent, angular teal object with an embedded dark circular lens rests on a light surface. This visualizes an institutional-grade RFQ engine, enabling high-fidelity execution and precise price discovery for digital asset derivatives. It optimizes capital efficiency, manages counterparty risk, supports multi-leg spread strategies, and provides deep market microstructure insights within a Prime RFQ framework.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-rfq-engine-high-fidelity-execution.jpg)

The absence of a privilege clause in an RFP creates a binding preliminary contract, exposing the issuer to litigation for breach of fairness.

- 
### [What Is the Practical Difference between a Binding ‘Contract A’ Rfp and a Non-Binding Rfp?](https://options.greeks.live/question/what-is-the-practical-difference-between-a-binding-contract-a-rfp-and-a-non-binding-rfp/)
![A central blue sphere, representing a Liquidity Pool, balances on a white dome, the Prime RFQ. Perpendicular beige and teal arms, embodying RFQ protocols and Multi-Leg Spread strategies, extend to four peripheral blue elements. This depicts High-Fidelity Execution of Digital Asset Derivatives within complex Market Microstructure, optimizing Capital Efficiency and mitigating Counterparty Risk.](https://options.greeks.live/wp-content/uploads/2025/07/high-fidelity-digital-asset-derivatives-rfq-protocol-execution-framework.jpg)

A binding 'Contract A' RFP creates an immediate contractual obligation upon bid submission, while a non-binding RFP is a flexible invitation to negotiate.

- 
### [How Does a Privilege Clause in an Rfp Affect the Obligations under Contract A?](https://options.greeks.live/question/how-does-a-privilege-clause-in-an-rfp-affect-the-obligations-under-contract-a/)
![Abstract spheres depict segmented liquidity pools within a unified Prime RFQ for digital asset derivatives. Intersecting blades symbolize precise RFQ protocol negotiation, price discovery, and high-fidelity execution of multi-leg spread strategies, reflecting market microstructure.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-1.jpg)

A privilege clause modifies Contract A by granting the owner discretionary power over the tender, yet this power remains constrained by an overriding duty of fairness.

- 
### [How Does a Privilege Clause Protect an Issuer in a Procurement Process?](https://options.greeks.live/question/how-does-a-privilege-clause-protect-an-issuer-in-a-procurement-process/)
![A central core represents a Prime RFQ engine, facilitating high-fidelity execution. Transparent, layered structures denote aggregated liquidity pools and multi-leg spread strategies. Internal patterns symbolize market microstructure data streams, enabling algorithmic pricing and optimal price discovery for institutional digital asset derivatives.](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-rfq-engine-for-institutional-digital-asset-derivatives-execution.jpg)

A privilege clause protects an issuer by contractually reserving rights to deviate from the default obligations of a tender process.

- 
### [What Is the “Contract A/Contract B” Paradigm and How Does It Apply to the Rfp Process?](https://options.greeks.live/question/what-is-the-contract-a-contract-b-paradigm-and-how-does-it-apply-to-the-rfp-process/)
![Central nexus with radiating arms symbolizes a Principal's sophisticated Execution Management System EMS. Segmented areas depict diverse liquidity pools and dark pools, enabling precise price discovery for digital asset derivatives. Circular markers denote RFQ participants, ensuring high-fidelity execution of institutional block trades within complex market microstructure.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-prime-os-rfq-liquidity-orchestration.jpg)

The Contract A/B paradigm imposes a binding process contract (A) on RFP participants, ensuring a fair competition to win the final work contract (B).

- 
### [Can a Bidder Successfully Sue for Proposal Costs If an Rfp Is Cancelled under a Broad Privilege Clause?](https://options.greeks.live/question/can-a-bidder-successfully-sue-for-proposal-costs-if-an-rfp-is-cancelled-under-a-broad-privilege-clause/)
![A sleek, high-fidelity beige device with reflective black elements and a control point, set against a dynamic green-to-blue gradient sphere. This abstract representation symbolizes institutional-grade RFQ protocols for digital asset derivatives, ensuring high-fidelity execution and price discovery within market microstructure, powered by an intelligence layer for alpha generation and capital efficiency.](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-institutional-digital-asset-derivatives-rfq-execution-terminal-system.jpg)

A bidder can sue for proposal costs if the owner's cancellation breaches the implied duty of fairness in the bidding contract.

- 
### [What Are the Key Differences in Legal Risk between an Rfp and a Formal Invitation to Tender?](https://options.greeks.live/question/what-are-the-key-differences-in-legal-risk-between-an-rfp-and-a-formal-invitation-to-tender/)
![A dark, transparent capsule, representing a principal's secure channel, is intersected by a sharp teal prism and an opaque beige plane. This illustrates institutional digital asset derivatives interacting with dynamic market microstructure and aggregated liquidity. It signifies precise RFQ block trade execution and high-fidelity within the Prime RFQ.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-market-microstructure.jpg)

An ITT carries the risk of a binding preliminary contract, while an RFP's primary legal risk lies in ensuring a fair and transparent negotiation process.

- 
### [How Does the Contract a and Contract B Framework Impact Rfp Communications?](https://options.greeks.live/question/how-does-the-contract-a-and-contract-b-framework-impact-rfp-communications/)
![A precise mechanical instrument with intersecting transparent and opaque hands, representing the intricate market microstructure of institutional digital asset derivatives. This visual metaphor highlights dynamic price discovery and bid-ask spread dynamics within RFQ protocols, emphasizing high-fidelity execution and latent liquidity through a robust Prime RFQ for atomic settlement.](https://options.greeks.live/wp-content/uploads/2025/07/precision-engineering-driving-institutional-digital-asset-derivatives-execution-across-advanced-rfq-protocols-and-prime-brokerage-frameworks.jpg)

The Contract A/B framework imposes a binding legal discipline on RFP communications, demanding formal, transparent, and equitable information exchange.

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---

**Original URL:** https://options.greeks.live/question/what-is-the-difference-between-a-binding-rfp-and-a-non-binding-rfp-in-canada/
