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Simple English definitions for legal terms
offer for sale by tender
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A quick definition of offer for sale by tender:
An offer for sale by tender is a type of auction where potential buyers submit sealed bids for a property or item. The seller sets a minimum price, and interested buyers submit their best offer in a sealed envelope. The seller then reviews the bids and chooses the highest one. This type of auction is often used for high-value items or properties where the seller wants to maintain privacy and control over the sale process. It is similar to a Dutch auction, where the price is gradually lowered until a buyer is found, but in a tender offer, the price is set by the seller and the buyers compete to offer the highest amount.
A more thorough explanation:
An offer for sale by tender is a type of auction where potential buyers submit sealed bids for a property or item. The seller then reviews the bids and chooses the highest one. This type of auction is also known as a Dutch auction.
- A homeowner wants to sell their house and decides to use an offer for sale by tender. They set a deadline for bids and interested buyers submit their offers in sealed envelopes. The homeowner reviews the bids and chooses the highest one.
- A company wants to sell a piece of equipment and uses an offer for sale by tender. Potential buyers submit their bids and the company chooses the highest one.
These examples illustrate how an offer for sale by tender works. Interested buyers submit their bids in a sealed envelope, which ensures that the bids are confidential. The seller then reviews the bids and chooses the highest one, which is the winning bid.