Referential bid explained

A referential bid is a bid or tender for the purchase or supply of goods or services whose value is stated by reference to the bids or tenders received from competitors (if any), e.g. "such a sum as will exceed by £200 the amount ... offered ... by any other proposing purchaser".[1] Case law in various jurisdictions (see below) has generally ruled that referential bids frustrate the purpose of sealed competitive bidding and are therefore unfair.[2]

Case law

Notes and References

  1. South Hetton Coal Co v Haswell Shotton and Easington Coal and Coke Co [1898] 1 Ch 465
  2. Justia US Law, SSI Investors Ltd. v. Korea Tungsten Mining Co. Ltd., accessed 21 December 2018
  3. http://www.bailii.org/ie/cases/IEHC/2006/H176.html Smart Telecom PLC trading as Smart Telecom v Raidió Teilifís Éireann and by order Glanbia PLC