Define: Firm Bid

A firm bid is a legally binding offer made by a contractor or supplier to perform a specific project or provide goods or services at a fixed price.

In general, a firm bid cannot be changed or withdrawn once it has been submitted. However, there may be certain circumstances, such as a mistake or error, that could allow for a bid to be modified or withdrawn.

If a contractor fails to honor a firm bid, the other party may have legal recourse. They may be able to sue for damages or seek specific performance, which would require the contractor to fulfill their obligations under the bid.

In most cases, a firm bid can be revoked before it is accepted. However, once the bid has been accepted by the other party, it becomes a binding contract and cannot be revoked without legal consequences.

To be valid, a firm bid typically needs to be in writing, clearly state the price and scope of work, and be signed by the contractor or supplier making the offer.

While a firm bid is generally not subject to negotiation, there may be some room for discussion or clarification of certain terms. However, any changes made to the bid would need to be agreed upon by both parties.

Yes, the recipient of a firm bid has the right to reject it if they find the terms or price unsatisfactory. However, they should do so promptly and in good faith to avoid potential legal disputes.

In most cases, a firm bid should be accepted in writing to ensure clarity and avoid misunderstandings. However, depending on the jurisdiction and circumstances, an oral acceptance may still be legally binding.

A firm bid typically has a specified expiration date, after which it is no longer valid. However, the bidder may choose to extend the bid’s validity period if agreed upon by both parties.

In general, a firm bid cannot be assigned or transferred to another party without the consent of all parties involved. However, there may be exceptions depending on the terms and conditions outlined in the bid.