auction
n. A method of sale in which parties are invited to make competing offers (bids) to purchase an item. The auctioneer, who acts as the agent of the seller until fall of the hammer, announces completion of the sale in favour of the highest bidder by striking his desk with a hammer (or in any other customary manner). Until then any bidder may retract his bid and the auctioneer may withdraw the goods. The seller may not bid unless the sale is stated to be subject to the seller’s right to bid. Merely to advertise an auction does not bind the auctioneer to hold one. However, if he advertises an auction without reserve and accepts bids, he will be liable if he fails to knock the item down to the highest outside bidder. An auctioneer who discloses his agency promises to a buyer that he has authority to sell and that he knows of no defect to the seller’s title; he does not promise that the buyer of a specific chattel will get a good title. Auctions can either result in a sale between a business seller and consumer buyer or between consumers (non-traders) who are both selling and buying. The law applicable differs depending on if a business sale is involved. Sales on eBay and similar sites on the internet are often by way of auction and can either be from a business to a consumer or consumer to consumer. Significant amounts of UK government contracting are now undertaken by way of online electronic auction. |