Legal Definitions - upset bid

Definition: An upset bid is a bid made in a judicial sale that is higher than the previous bid, with the intention of setting aside the sale.

Example: John bids $100,000 for a property in a judicial sale. Mary then makes an upset bid of $110,000, which is higher than John's bid. If no one else makes a higher bid, the sale will be set aside and Mary will become the new owner of the property.

This example illustrates how an upset bid works in a judicial sale. It allows interested parties to make a higher bid and potentially acquire the property, while also ensuring that the sale is fair and the property is not sold below its actual value.