Multiple choice

A bid at an auction is provisionally accepted but that is subject to final approval of an authority:

  1. Contract is final

  2. It will not become contract

  3. Contract will be flnal on approval of authority

  4. None of above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

At an auction, a bid is only an offer that creates provisional acceptance. The actual contract is formed only when the auctioneer accepts the bid, often subject to conditions like authority approval. Until such final approval and acceptance are obtained, there is no complete contract. Option C correctly states that the contract becomes final upon approval of the authority.

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