referential bid

{{short description|Type of bid in an auction}}

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".South Hetton Coal Co v Haswell Shotton and Easington Coal and Coke Co [1898] 1 Ch 465 Case law in various jurisdictions (see below) has generally ruled that referential bids frustrate the purpose of sealed competitive bidding and are therefore unfair.Justia US Law, [https://law.justia.com/cases/new-york/court-of-appeals/1982/55-n-y-2d-934-0.html SSI Investors Ltd. v. Korea Tungsten Mining Co. Ltd.], accessed 21 December 2018