BUSINESS ADMINISTRATION
BUSINESS LAW
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Are inviting offers
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Counter offer
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Implied offer
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Implied acceptance
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Detailed explanation-1: -Section 10 of the Indian Contract Act, 1872 requires a valid offer and acceptance for a contract to be enforceable. An auction constitutes only an invitation to offer and not an offer in itself.
Detailed explanation-2: -A bid at an auction is an acceptance of offer which is confirmed by the fall of hammer.
Detailed explanation-3: -Auction without reserve: Where an auction is “without reserve” (i.e there is no minimum priced bid required to win the auction) each bid is an offer, and when the auctioneer ends the bidding, this is the acceptance.
Detailed explanation-4: -Sealed Bid Auction: In this type of auction, potential buyers send their bids to the seller in sealed envelopes. The highest bidder wins the product at the end of the bidding process.
Detailed explanation-5: -An offer differs from an invitation to treat as the acceptance of an offer usually makes it legally binding. An offer on its own is not necessarily legally binding, however, once an offer has been accepted, the two parties have entered into a contract which should be fulfilled.