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