Invitation to tender
VIJAY K. TEOTIA
(Querist) 18 July 2013
This query is : Resolved
Is invitation to tender containing terms and conditions is an agreement enforceable by the law, where a subsequent agreement is required to be signed. can a party after submitting a tender back out from signing the subsequent agreement. if yes what liability incurs upon such party.
R.K Nanda
(Expert) 18 July 2013
state real facts.
Guest
(Expert) 19 July 2013
Dear Mr. Teotia,
In the absence of description about the real problem, your query is of academic nature.
However, a tender document contains pre-requisite conditions to be abided by by the bidders at the time of making bid and after being selected as a successful comptitive bidder. The award of contract is always subject to signing of a prescribed agreement consisting the said terms of the tender document. Unless agreement is signed, the contracted job cannot be commenced on the part of the contractor.
The contractor, if back out from his bid and refuses to sign the agreement his contract is subject to cancellation that leads to forfieture of earnest money also, which he would have deposited before submitting his bid. So, stipulation of earnest money, as one of the tender conditions, is quite necessary to restrain backing out of the successful bidder after his selection.
VIJAY K. TEOTIA
(Querist) 19 July 2013
Mr Dhingra, thank you very much. I am asking to add value to my knowledge, although it was not related to any immediate real time problem. A document came to me and these questions arises to my mind there fore I asked. My query resolved. Thanks again. Vijay teotia
Guest
(Expert) 19 July 2013
You are welcome. But even if some document with already processed case came before you for scrutiny on legal angle and some doubt arose in your mind that itself means some background of the problem was existing there and you were curious to satisfy yourself whether the process adopted was correct or not. So, background of any query always exists there.
Guest
(Expert) 20 July 2013
Nice of you for understanding the need of the background etc. for appropriate solution to the problem.
prabhakar singh
(Expert) 20 July 2013
Any way whatever reason is behind your query!
It is made CLEAR that a TENDER is an "INVITATION TO OFFER" and FILING TENDER is an "OFFER" "ACCEPTANCE" whereof CONSTITUTES
"AGREEMENT"ON "TERMS" AGREED BETWEEN WHICH MAY BE REDUCED IN WRITING.
You need to read Indian Contract Act 1872,Chapter I Communication, Acceptance and Revocation of Proposals(Ss.3 to 9)to clear anxiety in this regard.
