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Where in an auction sale, the seller appoints more than one bidder, the sale is
  • a)
    void
  • b)
    illegal
  • c)
    conditional
  • d)
    voidable
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Where in an auction sale, the seller appoints more than one bidder, th...
Explanation:

In an auction sale, the seller appoints more than one bidder, which means that the seller has given authority to multiple individuals to place bids on their behalf. In such a situation, the sale is considered voidable.

Voidable Sale:
A voidable sale is a transaction that is initially valid, but one or both parties have the option to declare the contract void or enforce it. It means that the contract is valid unless one of the parties chooses to void it. In the given scenario, the seller has the option to void the sale if they are not satisfied with the bids or if any irregularities occur during the auction process.

Reasons for Sale Being Voidable:

1. Lack of Authorization: If the seller appoints more than one bidder without proper authorization, the sale can be considered voidable. The seller must have the legal authority to appoint multiple bidders on their behalf.

2. Irregularities in the Auction Process: If any irregularities occur during the auction process, such as collusion between bidders or manipulation of bids, the seller may choose to void the sale. This protects the seller's interests and ensures a fair and transparent auction process.

3. Dissatisfaction with Bids: If the seller is not satisfied with the bids received or if the bids do not meet their expectations, they can choose to void the sale. This gives the seller the flexibility to reject the bids and try again at a later time or with different bidders.

Legal Implications:

A voidable sale means that the contract is initially valid, but the seller has the option to declare it void if certain conditions are not met. This provides a level of protection to the seller and ensures that they have the opportunity to reconsider the sale if necessary.

It is important to note that a voidable sale is different from an illegal sale. An illegal sale is one that is prohibited by law and is void from the beginning. In the given scenario, the sale is not illegal, but rather it is voidable, which means that the seller has the choice to void the sale if they wish.

In conclusion, when the seller appoints more than one bidder in an auction sale, the sale is considered voidable. This gives the seller the option to void the sale if they are not satisfied with the bids or if any irregularities occur during the auction process.
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Where in an auction sale, the seller appoints more than one bidder, the sale isa)voidb)illegalc)conditionald)voidableCorrect answer is option 'D'. Can you explain this answer?
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