THE INDIAN CONTRACT ACT 1872 (1)

Proposer but not afterwards the in case of sale by

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Unformatted text preview: d the highest offer may be accepted by the auctioneer. In such a case the sale is complete when the auctioneer announces its completion by the fall of the hammer or in any other customary manner ; and , until such announcement is made, any bidder may retract his bid. bid. Submission of a tender to supply or purchase goods at a stated Submission price is making an offer. Person submitting the tender may withdraw his tender before the same has been approved. Even after the tender has been approved that remains only a standing offer, which is capable of being revoked before a contract arises by placing of orders. In Rajendra Kumar Verma Vs. State of Madhya Pradesh AIR 1972 Madhya The respondents advertised for receiving tenders for sale of Tendu The Patta (leaves). The petitioner submitted his tender. Before the date of the opening of the tenders the petitioner made an application withdrawing his tender and also requesting that his tender be not opened. One of the conditions in the tender notice was that a tenderer may withdraw his tender before the tender are open provided that there should be at least one other valid tender when the tenders are opened. Petitioner’s tender was the only tender submitted. In spite of his request to withdraw the tender the Government accepted his tender. Since the petitioner did not execute the purchaser’s agreement , Tendu leaves were sold to somebody else at a lower rate, and then an action was brought against the petitioner to claim compensation for the loss suffered by the Government. the The contentioner of the petitioner was that since he had The withdrawn his tender before the same had been opened and accepted, there was no offer in existence which could be accepted. The respondents, however, contended that the offer could not be withdrawn in accordance with the tender notice and, therefore, the petitioner’s offer was still alive and had ripened into contract by acceptance. contract It was held that in spite of the clause in the tender notice It against the withdrawal of the offer, the petitioner had a right to withdraw his offer before the same was accepted. In this case there was no offer which could be accepted, there had arisen no contract between the petitioner and the respondents and, as such, the respondents had no right to claim any compensation....
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This document was uploaded on 09/24/2013.

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