Bid Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Bid, written in plain English, along with examples of how it is used.
What is Bid?
(n) Bid is the price, cost or value proposed by a person for a property, article, service etc when a request is made to the public for offering their rate and conditions for dealing in such property, article or service. Bid is an offer and hence it need to be accepted to make a valid contract.
History and Meaning of Bid
A bid is an offer to purchase goods or services at a specific price. It can be traced back to the early days of commerce when suppliers and buyers came together to trade their goods in a marketplace. Over time, auction houses would emerge, where multiple buyers would place bids on items for sale. Today, bids can be made online, in person, or over the phone, and they play a critical role in many industries.
Examples of Bid
- A home buyer places a bid on a house for sale, offering $300,000 for the property.
- A company places a bid on a government contract to provide services, offering $10 million over five years.
- An artist places a bid on a painting at an auction, offering $50,000 for the artwork.
- An investor places a bid on a stock, offering to buy 1,000 shares at $50 each.
Legal Terms Similar to Bid
- Offer: An expression of willingness to do business, often with specific terms and conditions.
- Invitation to Treat: A preliminary statement that indicates a willingness to negotiate or enter into a contract.
- Contract: A legally binding agreement between two or more parties.
- Agreement: A mutual understanding between two or more individuals or parties.
- Purchase Order: A document sent by a buyer to a supplier indicating the items or services to be purchased and the terms and conditions of the sale.