Summarise three rules governing a sale auction.

Rules governing sale auction:-

  • Where goods are put for sale auction in lots, each lot is prima facie deemed to be the subject of a separate contract of sale.
  • Knockouts are allowed unless fraudulent
  • A sale auction is complete when the auctioneer announces its completion the fall of the hammer, or in other customary manner.
  • Where a sale auction is not notified to be subject to a right to bid on behalf of the seller, it shall not be lawful for the seller to bid himself or to employ any person to bid at the sale.
  • A sale auction may be notified to be subject to a reserved or upset price and a right to bid may also be reserved expressly or on behalf of the seller.
  • Notice of the auction
  • Goods are sold to the highest bidder
  • Puffing is considered fraudulent
(Visited 4 times, 1 visits today)
Share this:

Written by 

Leave a Reply

Your email address will not be published. Required fields are marked *