DEFINITION of 'Retract'

The withdrawal of a bid, offer or statement before any relevant party acts on the information provided. In most circumstances, retracting an offer within a proper time frame will relieve a person of any obligations associated with the bid.


Before retracting a bid, there may be some things worth considering. For example, it is common practice in real estate transactions to provide a deposit, known as earnest money, to the seller. This shows the buyer's intention to complete the transaction. If the buyer decides to retract the offer on the property, he or she may also be required to forfeit the deposit.

  1. Good Faith Money

    The deposit of money into an account by a buyer to show that ...
  2. Obligation

    The legal responsibility to meet the terms of a contract. If ...
  3. Earnest Money

    A deposit made to a seller showing the buyer's good faith in ...
  4. Counteroffer

    A type of offer made in response to another offer, which was ...
  5. Bid

    1. An offer made by an investor, a trader or a dealer to buy ...
  6. Liquidity

    The degree to which an asset or security can be quickly bought ...
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