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A company advertises for suppliers to submit tenders and reserves the right to accept or reject them.…

An ordinary invitation to tender invites suppliers to make proposals. The supplier's tender is ordinarily the offer. Acceptance of the offer makes it a promise under section…

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A company advertises for suppliers to submit tenders and reserves the right to accept or reject them. In ordinary contract formation under the Indian Contract Act, 1872, what is the advertisement?

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Answer and explanation

Correct answer A

An ordinary invitation to tender invites suppliers to make proposals. The supplier's tender is ordinarily the offer. Acceptance of the offer makes it a promise under section 2(b).

Option feedback

Option A

The advertisement solicits proposals from suppliers for the company to consider.

Option B

Submitting a tender ordinarily makes the offer. The invitation has not already made an offer to supply or buy.

Option C

A standing offer is a possible character of a bidder's tender, depending on the terms, rather than the ordinary invitation soliciting that tender.

Option D

The advertisement solicits offers, so it has not accepted a supplier's proposal.

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