HopefullyInLawSchool
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LSDefine
Simple English definitions for legal terms
sealed bid
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A quick definition of sealed bid:
A sealed bid is when someone writes down how much they are willing to pay for something and puts it in an envelope. The bids are not opened until everyone has submitted their offer. This is often used in auctions or when companies are looking for someone to do a job for them. It helps to keep the bidding fair and private.
A more thorough explanation:
A sealed bid is a type of bid where the bidder submits their offer in a sealed envelope or container. The bids are not disclosed until all submitted bids are opened and considered simultaneously. This type of bid is commonly used in auctions or when a company is looking for a contractor to perform work or supply goods.
- At an auction, bidders may submit sealed bids for a piece of artwork. The highest bidder will win the auction.
- A company may request sealed bids from contractors for a construction project. The company will review all the bids and select the contractor with the best offer.
These examples illustrate how sealed bids work. Bidders submit their offers in a sealed envelope or container, and the bids are not disclosed until all bids are opened and considered simultaneously. This ensures that all bidders have an equal chance of winning the auction or contract.