What is sale by auction?

Sale by auction is a public sale where different inteding buyers collect together to try to outshine each other. Here the goods are sold to the highest bidder. The auctioneer is the agent of the owner of the goods and sells them by auction on his behalf. The relationship between the owner and the auctioneer is that of the principal and agent and is governed by the same rules which are stated below:

When goods are put up for sale, eat lot is treated to be the subjet of a separate contract of sale

Sale is considered to be complete only when the auctioneer completes it in the same customary manner.

Right to bid may be reserved expressly by or on behalf of the seller.

if the right to bid by the seller is not reserved, it is not lawful for the autioneer knowingly to take any bid from the seller or from any other person on sellers behalf

Sale may be notified to be subject to a reserve or upset price

The buyer has the right to avoid the sale, if the seller makes use of pretended bidding to raise the price.