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Where in an auction sale notified with reserve price, the auctioneer mistakenly knocks down the goods for less than the reserve price, then the auctioneer is
- a)bound by auction
- b)not bound by auction
- c)liable for damages
- d)both (a) and (c)
Correct answer is option 'B'. Can you explain this answer?
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Where in an auction sale notified with reserve price, the auctioneer m...
The Liability of an Auctioneer in a Sale with Reserve Price
In an auction sale notified with reserve price, the auctioneer has the responsibility to sell the goods at or above the reserve price. However, if the auctioneer mistakenly knocks down the goods for less than the reserve price, the liability of the auctioneer is a matter of legal consideration. The correct answer to the question is option 'B' - the auctioneer is not bound by auction.
Explanation
There are several reasons why an auctioneer is not bound by auction if they mistakenly knock down goods for less than the reserve price:
1. Auctioneer's Duty of Care
The auctioneer has a duty of care to the seller and the buyer to ensure that the auction is conducted in a fair and transparent manner. If the auctioneer makes a mistake that results in a lower sale price, they may be held liable for breaching their duty of care.
2. Reserve Price
The reserve price is the minimum price that the seller is willing to accept for the goods. If the auctioneer mistakenly knocks down the goods for less than the reserve price, the seller is not obligated to sell the goods at that price.
3. Auctioneer's Discretion
The auctioneer has the discretion to withdraw the goods from sale if they believe that the bidding has not reached the reserve price. If the auctioneer mistakenly knocks down the goods for less than the reserve price, they may exercise their discretion to withdraw the goods from sale.
Conclusion
In conclusion, an auctioneer is not bound by auction if they mistakenly knock down goods for less than the reserve price. However, the liability of the auctioneer depends on the circumstances of the sale, such as the auctioneer's duty of care, the reserve price, and the auctioneer's discretion.
In an auction sale notified with reserve price, the auctioneer has the responsibility to sell the goods at or above the reserve price. However, if the auctioneer mistakenly knocks down the goods for less than the reserve price, the liability of the auctioneer is a matter of legal consideration. The correct answer to the question is option 'B' - the auctioneer is not bound by auction.
Explanation
There are several reasons why an auctioneer is not bound by auction if they mistakenly knock down goods for less than the reserve price:
1. Auctioneer's Duty of Care
The auctioneer has a duty of care to the seller and the buyer to ensure that the auction is conducted in a fair and transparent manner. If the auctioneer makes a mistake that results in a lower sale price, they may be held liable for breaching their duty of care.
2. Reserve Price
The reserve price is the minimum price that the seller is willing to accept for the goods. If the auctioneer mistakenly knocks down the goods for less than the reserve price, the seller is not obligated to sell the goods at that price.
3. Auctioneer's Discretion
The auctioneer has the discretion to withdraw the goods from sale if they believe that the bidding has not reached the reserve price. If the auctioneer mistakenly knocks down the goods for less than the reserve price, they may exercise their discretion to withdraw the goods from sale.
Conclusion
In conclusion, an auctioneer is not bound by auction if they mistakenly knock down goods for less than the reserve price. However, the liability of the auctioneer depends on the circumstances of the sale, such as the auctioneer's duty of care, the reserve price, and the auctioneer's discretion.
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Where in an auction sale notified with reserve price, the auctioneer m...
Reserved Price Means Base Price. If Any Particular thing which is being sold at Auction Sale then It can't be Sale below this Base/Reserved Price.It can always be Higher then This Price,Then It will only bound to Sale.If Its being sold below than that Price obviously Auctioneer is not bound by sale
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Where in an auction sale notified with reserve price, the auctioneer mistakenly knocks down the goods for less than the reserve price, then the auctioneer isa)bound by auctionb)not bound by auctionc)liable for damagesd)both (a) and (c)Correct answer is option 'B'. Can you explain this answer?
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