I. The contract is established when the commitment takes effect.
1. When the notice of award is issued, the legal effect of the commitment to take effect and the contract is established. Therefore, after the legal effect of the notice of award, the bidder shall not change the result of the winning bid, the bidder shall not give up the winning project.
2. The bidder changes the winning results, change the winning bidder, in essence, is a unilateral act of tearing up the contract; The bidder to give up the winning project, is a kind of non-performance of the contract. Both behaviors belong to the breach of contract, so should be liable for breach of contract.
Two, when the contract comes into force
1. When the notice of award is issued, legally binding on the winning bidder and the bidder. The reason is that, in accordance with the requirements of the "arrival of the doctrine", even if the notice of award is issued in time, there may be delayed, lost or misdirected in the process of transmission through no fault of the bidder, resulting in the successful bidder failed to receive the notice within the validity period of the bidding, and the bidder loses the right to be bound to the successful bidder.
2. The bidder's right to do so can be protected under the requirements of the "letter-sending doctrine".
Third, the penalty for breach of contract
1. deposit penalty.
Down payment is a contract for the parties to guarantee the performance of the contract, by a party to the contract subject to pay a certain amount of money to the other party in advance by agreement, the party who paid the deposit will not fulfill the contract has no right to demand the return of the deposit, and the party who received the deposit should be doubled when the contract is not fulfilled in the future to return the deposit.
2. Compensation for losses.
Compensation for damages is an important form of liability for breach of contract.
Legal basis:
"Chinese people's **** and the state bidding and tendering law"
Article 46
The bidder and the successful bidder shall, within thirty days from the date of the notification of the winning bid, enter into a written contract in accordance with the bidding documents and the bidding documents of the successful bidder. The bidder and the successful bidder shall not enter into any other agreement that departs from the substance of the contract.
If the bidding documents require the successful bidder to submit a performance bond, the successful bidder shall do so.
Article 47
Projects that must be tendered according to law, the bidder shall, within fifteen days from the date of determining the winning bidder, submit a written report on the bidding and tendering to the relevant administrative supervision department.