Bea Barnes was conducting an auction of certain farm equipment.?

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  • #656
    Marcy Slachman
    Participant

    Bea Barnes was conducting an auction of certain farm equipment. Ana Adams bid $50 for a plow that was put up for bid. Ana’s bid was the only bid made for the plow. Bea stated that she was not accepting Ana’s bid, and that the plow could not be sold for such a low price. What is the legal effect / result from these facts?

    a. Ana’s bid was an acceptance of the offer to sell the plow, resulting in a valid contract.
    b. Ana’s bid was merely an offer, and there can be no contract until an offer is accepted.
    c. Once the plow was put up for bid it had to be sold if anyone bid on it. Ana wins.
    d. The rule of auctions requires at least two bidders and at least two bids before an item can so sold, so Ana loses.
    e. Bea failed to properly explain the rules of the auction before the bidding began, so Ana wins.

    #657
    Jim Burgess
    Participant

    if you live in Australia the answer is b.

    an auction is an invitation to treat and therefore any bid is merely an offer
    the only exception to this is an auction without a reserve in which case the the auctioneer is contractually bound to knock down the item. (though not necessarily to the highest or lowest bidder)

    In you case it has not be established whether the auction is with or without a reserve so arguably ‘A’ or ‘B’ could be correct but I would probably settle on B.

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