Legal Definitions - firm bid

A firm bid is an offer made by a buyer to pay a specific price for something that may or may not be for sale. It is a bid that remains open and binding until it is either accepted or rejected. A firm bid usually does not contain any unusual conditions that might prevent acceptance.

• At an auction, a bidder makes a firm bid of $10,000 for a painting. This bid remains open and binding until the auctioneer accepts or rejects it.
• A construction company submits a firm bid of $500,000 to build a new office building. This bid remains open and binding until the company is either awarded the contract or the bid is rejected.

These examples illustrate how a firm bid is an offer that remains open and binding until it is either accepted or rejected. It is a way for buyers to make a serious offer and show their commitment to purchasing something.