Browse Definitions :
Definition

gazumping

Gazumping is what happens when a seller accepts an offer, but backs out of the deal after receiving a higher offer.  More commonly seen in informal and verbal agreements to purchase non-commodity assets, gazumping is a frowned-upon but not necessarily illegal occurance. The first buyer, whose offer is initially accepted but is later rejected in favor of a higher offer, is said to have been "gazumped."

In some places of the world, acceptance of an offer is not legally binding until it is put in writing. The non-binding status of a verbal offer allows the seller to solicit higher offers up to the time a contract is signed or a written bill of sale (BoS) is issued. When the market is bullish and demand is on the rise, gazumping can lead to bidding wars. In real estate, gazumping can be especially frustrating -- not only because of the personal anxiety it creates for the buyer, but also because the buyer may have spent money on surveys and inspections, only to lose the deal.

In gazundering, a similar term, the buyer retracts a verbal offer at some point and then submits a lower purchase price. Gazundering is more likely to occur in faltering bear markets when the economy declines and there is a drop in wholesale prices. Should a seller refuse an offer and wait in hopes of getting a better one, he is said to be gazanging. The terms gazumping, gazundering and gazanging are more commonly used in market segments where offers are often made and accepted verbally, at least initially. They are also used to describe unacceptable practices for website auctions.

This was last updated in October 2017

Continue Reading About gazumping

SearchCompliance
  • compliance risk

    Compliance risk is an organization's potential exposure to legal penalties, financial forfeiture and material loss, resulting ...

  • information governance

    Information governance is a holistic approach to managing corporate information by implementing processes, roles, controls and ...

  • enterprise document management (EDM)

    Enterprise document management (EDM) is a strategy for overseeing an organization's paper and electronic documents so they can be...

SearchSecurity
  • Extensible Authentication Protocol (EAP)

    The Extensible Authentication Protocol (EAP) is a protocol for wireless networks that expands the authentication methods used by ...

  • session key

    A session key is an encryption and decryption key that is randomly generated to ensure the security of a communications session ...

  • data breach

    A data breach is a cyber attack in which sensitive, confidential or otherwise protected data has been accessed and/or disclosed ...

SearchHealthIT
SearchDisasterRecovery
  • risk mitigation

    Risk mitigation is a strategy to prepare for and lessen the effects of threats faced by a business.

  • call tree

    A call tree is a layered hierarchical communication model that is used to notify specific individuals of an event and coordinate ...

  • Disaster Recovery as a Service (DRaaS)

    Disaster recovery as a service (DRaaS) is the replication and hosting of physical or virtual servers by a third party to provide ...

SearchStorage
  • cloud storage

    Cloud storage is a service model in which data is transmitted and stored on remote storage systems, where it is maintained, ...

  • cloud testing

    Cloud testing is the process of using the cloud computing resources of a third-party service provider to test software ...

  • storage virtualization

    Storage virtualization is the pooling of physical storage from multiple storage devices into what appears to be a single storage ...

Close