Question based on MIMB BL Solved Assignment and other course
Answer:
In an auction sale, the auctioneer invites bids from prospective purchasers and sells the goods to the highest bidder. Section 64 lays down the following rules relating to an auction sale:
- According to Section 64 (1) where goods are put up for sale in lots, each lot is prima facie deemed to be the subject of a separate contract of sale.
- According to Section 64 (2) the sale is complete when the auctioneer announces its completion by the fall of hammer or in other customary manner; and until such announcement is made, an bidder may retract his bid. .
- According to Section 64 (3) a right to bid may be reserved expressly by or on behalf of the seller and where such right is expressly so reserved but not otherwise, the seller or any one person on his behalf may, subject to the provisions hereinafter contained, bid at the auction. .
- According to Section 64 (4) where the sale is not notified to be subject to a right of the seller, it shall not be lawful for the seller to bid himself or to employ any person to bid at such sale or for the auctioneer knowingly to take any bid from the seller of any such person; and any sale contravening this rule may be treated as fraudulent by the buyer. .
- According to Section 64 (5) The sale may be notified to be subject to a reserved or upset price. (Sec. 64(5)).
- According to Section 64 (6) If the seller makes use of pretended bidding to raise the price, the sale is voidable at the option of the buyer.
