Rules governing sale by auction

Summarise three rules governing a sale by auction

Rules governing sale by auction:-

  • Where goods are put for sale by 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 by auction is complete when the auctioneer announces its completion by the fall of the hammer, or in other customary manner.
  • Where a sale by 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 by auction may be notified to be subject to a reserved or upset price and a right to bid may also be reserved expressly by or on behalf of the seller.
  • Notice of the auction Goods are sold to the highest bidder
  • Puffing is considered fraudulent

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