Qualified bid requirements aim to "eliminate potential overbidders
who are not serious about purchasing the debtor's assets, ensure the sale can be rapidly closed if an overbidder
should purchase the assets, and ensure that the net purchase price is higher than the original bid should overbidding occur.
The proposed tenant who therefore volunteers to pay 10 years' rent up front; an overbidder
well in excess of an already inflated guide price; the purchaser whose gearing is as low as his apparent asset strength levels - all of these are scenarios where the reasonably competent property agent may risk stretches at Her Majesty's pleasure if he otherwise fails to report.
At any time prior to August 18, 2005, any party interested in participating in the sale as a potential overbidder
may obtain access to due diligence materials by providing a refundable deposit in the amount of $50,000 and executing a confidentiality agreement.
In an example from Colchester in 1429 such an overbidder
is described as a forestaller.
But the promisor could have negotiated with the promisee for a release, which would have allowed her both to not breach and to sell the commodity to the overbidder.
Overbidder has a strategic need for the Acme, because he is putting together a hotel chain and needs a hotel in Chicago to complete the chain.
If specific performance is unavailable (because, for example, Seller completes the sale of the Acme to Overbidder before Buyer can get to court), Buyer's expectation damages would be $1 million, leaving Seller with a gain of $4 million from the breach.
For example, in a variant of the Acme Hotel hypothetical, Overbidder may offer to buy the Acme from Seller without Seller having solicited the offer, because Overbidder independently identified the Acme as a desirable purchase.
The Trustee has also filed a motion with the bankruptcy court seeking an order approving the sale to Iken or a qualified overbidder