An offer is regarded as a standing offer if it is meant to remain open for a certain amount of time and can be accepted any time before the deadline. When a company needs a large quantity of products from time to time, it usually invites tenders for the supply of the products through an advertisement.

What is a standing offer?

A standing offer is not a contract. A standing offer is an offer from a potential supplier to provide goods and/or services at pre-arranged prices, under set terms and conditions, when and if required. It is not a contract until the government issues a "call-up" against the standing offer.

How is standing offer different from offer?

In case an offer is made by post, its communication will complete when the letter containing the offer reaches the offeree. ... When a standing offer is accepted, it means an order will be placed with the party who submitted tender whenever the products are required, and a distinct contract will be made for each order.