Legal Definitions - sealed bid

A sealed bid is a type of bid where the bidder submits their offer in a sealed envelope or container. The bids are not disclosed until all submitted bids are opened and considered simultaneously. This type of bid is commonly used in auctions or when a company is looking for a contractor to perform work or supply goods.

• At an auction, bidders may submit sealed bids for a piece of artwork. The highest bidder will win the auction.
• A company may request sealed bids from contractors for a construction project. The company will review all the bids and select the contractor with the best offer.

These examples illustrate how sealed bids work. Bidders submit their offers in a sealed envelope or container, and the bids are not disclosed until all bids are opened and considered simultaneously. This ensures that all bidders have an equal chance of winning the auction or contract.