Reserve Price - Definition - Law Dictionary Home Dictionary Definition reserve-price

Definition :

Reserve Price, Indicates the object behind fixing the reserve price viz. to limit the authority of the auctioneer. In the present case, the board resolution is meant to guide the officers of the second respondent. The resolution prescribes the guidelines for fixing the reserve price. The concept of reserve price is not synonymous with valuation of the property. These two terms operate in different spheres. An invitation to tender is not an offer. It is an attempt to ascertain whether an offer can be obtained with a margin, Pollock and Mulla on Indian Contract and Specific Reliefs Acts (2001), 12th Edn., p. 50; see Anil Kr. Srivastava v. State of Uttar Pradesh, (2004) 8 SCC 671.