Law:

Section:

Contract Act (IX of 1872)-------S. 2(f)---Public auction---Authority reserving right to accept or reject bid/offer without assigning any reason---Scope---Such right and discretion to cancel bid/offer must be exercised fairly and equitably, but before its acceptance by competent authority--Binding contract would come into being after acceptance of bid/offer, .and then authority would have no right and discretion to reject bid/offer---Signing of formal agreement etc., would be procedural requirements---Principles. Authority may reserve to itself right to accept or reject, bid/offer without assigning any reason, provided such authority is exercised with circumspection, due care and utmost responsibility. Such reservation of authority to reject the bid does not clothe the public functionary with brazen and arbitrary power to reject the offer merely because it possesses such power and/or that it reserved to itself such power. Such right or reservation to cancel or revoke the bid could be retained till the offer is not accepted by the competent authority as reserved under the invitation or offer. Once that stage is crossed and the competent authority approves the bid/offer, a binding contract comes into being. Signing of the formal agreement etc., is but procedural requirements. Public functionary has to exercise its authority with all care and diligence. Once offer is invited on stated terms and conditions, adherence to representation and commitment is obligated upon such functionary. Onerous responsibility is cast upon public functionary to establish and regain its credibility and public trust and confidence in discharge of its public duties and functions, which is fast eroding. There is serious dearth of credibility in the public functionaries. All possible efforts should be made by the public functionary to live up to commitments and representation made by it and adhere to the commitment and live up to the expectation of the common citizen in the realm of contractual obligation committed by it in discharge of its statutory duties. The discretion and right reserved to reject bid or offer are to be exercised fairly, equitably and before the acceptance by the…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492