What Price Auctions Without Reserve
The decision of the Court of Appeal in Barry v Davis (t/a Heathcote Ball (Commercial Auctions) & Co) and Others' brings clarity to an important area, which has been left uncertain for nearly one hundred and fifty years. It is trite law in auction sales that the advertising of a sale by auction constitutes only an invitation to treat, that a bid constitutes the contractual offer, and that a contract for sale of a lot is effected on the fall of the hammer or other customary means which constitutes acceptance of the offer. It is also the case that any bid that is exceeded by a higher bid which is taken by the auctioneer thereupon lapses and that, in accordance with general contractual principles, a bidder may withdraw a bid at any time before acceptance. All of this may give way to specific provision in the auction conditions.