CA Foundation Exam > CA Foundation Questions > In pretended bidding sale is :a)Voidable at t...
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In pretended bidding sale is :
- a)Voidable at the option of the buyer
- b)Voidable at the option of the seller
- c)It is legal and nothing can be done
- d)Buyer can ask for the goods at discounted rate
Correct answer is option 'A'. Can you explain this answer?
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In pretended bidding sale is :a)Voidable at the option of the buyerb)V...
Rules regarding Auction Sale:
1. If the goods are put up for sale in an auction in lots, each lot is deemed to be a subject of a separate contract of sale.
2. When the auctioneer announces its completion by the fall of the hammer or in some other customary manner, the sale is considered complete. Until such an announcement, any bidder may revoke his bid.
3. In an Auction sale, a right to sell may be reserved expressly by the seller. In such a case, the seller or any one person on his behalf may bid at the auction.
4. Where a sale is not notified to be subject to a right to bid on behalf of the seller, it is not lawful for the seller to bid himself or to employ any person to bid at such a sale.
5. The sale may be notified to be subject to a ‘reserve‘ or ‘upset‘ price. It is a price below which the auctioneer will not sell in the Auction.
6. In an Auction sale, if the seller makes use of pretended bidding to raise the price, the sale is voidable at the option of the buyer (he may avoid it).
7. Sometimes, a group of persons may form a combination to prevent competition among themselves in an auction. Only one of them may actually bid and they may share the benefits later privately. Such a combination is called a ‘knock out‘ and is not illegal. But if the intention of the parties is to defraud a third party, the knock out is illegal.
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In pretended bidding sale is :a)Voidable at the option of the buyerb)V...
Pretended Bidding Sale
In a pretended bidding sale, the sale is voidable at the option of the buyer. This means that the buyer has the right to either affirm the sale or treat it as void and reject the goods. Let's delve into the details to understand why this is the correct answer.
Definition of Pretended Bidding Sale
A pretended bidding sale refers to a situation where the seller, either directly or through an agent, bids at an auction to artificially inflate the price of the goods. This practice is considered fraudulent as it deceives genuine bidders and manipulates the market.
Voidable at the Option of the Buyer
When a sale is voidable at the option of the buyer, it means that the buyer has the right to either enforce the contract or reject the goods and seek remedies. In the case of a pretended bidding sale, the buyer is deceived by the seller's actions, leading to an unfair and fraudulent transaction.
Legal Consequences for the Seller
The seller in a pretended bidding sale has engaged in fraudulent conduct by artificially inflating the price of the goods. As a result, the buyer has the option to treat the sale as void and seek remedies. The buyer may choose to reject the goods and claim a refund of any amount paid, or they may decide to affirm the sale and seek damages for any losses incurred.
Reasoning Behind the Answer
The correct answer to this question is option 'A' because a pretended bidding sale is considered voidable at the option of the buyer. This is because the buyer has been deceived by the seller's fraudulent conduct, which undermines the fairness and integrity of the transaction. The buyer is entitled to choose whether to enforce the contract or reject the goods based on the deception involved in the sale.
Conclusion
In summary, a pretended bidding sale is voidable at the option of the buyer. The buyer has the right to treat the sale as void and reject the goods due to the fraudulent conduct of the seller. This ensures that the buyer is protected from unfair and deceptive practices in the marketplace.
In a pretended bidding sale, the sale is voidable at the option of the buyer. This means that the buyer has the right to either affirm the sale or treat it as void and reject the goods. Let's delve into the details to understand why this is the correct answer.
Definition of Pretended Bidding Sale
A pretended bidding sale refers to a situation where the seller, either directly or through an agent, bids at an auction to artificially inflate the price of the goods. This practice is considered fraudulent as it deceives genuine bidders and manipulates the market.
Voidable at the Option of the Buyer
When a sale is voidable at the option of the buyer, it means that the buyer has the right to either enforce the contract or reject the goods and seek remedies. In the case of a pretended bidding sale, the buyer is deceived by the seller's actions, leading to an unfair and fraudulent transaction.
Legal Consequences for the Seller
The seller in a pretended bidding sale has engaged in fraudulent conduct by artificially inflating the price of the goods. As a result, the buyer has the option to treat the sale as void and seek remedies. The buyer may choose to reject the goods and claim a refund of any amount paid, or they may decide to affirm the sale and seek damages for any losses incurred.
Reasoning Behind the Answer
The correct answer to this question is option 'A' because a pretended bidding sale is considered voidable at the option of the buyer. This is because the buyer has been deceived by the seller's fraudulent conduct, which undermines the fairness and integrity of the transaction. The buyer is entitled to choose whether to enforce the contract or reject the goods based on the deception involved in the sale.
Conclusion
In summary, a pretended bidding sale is voidable at the option of the buyer. The buyer has the right to treat the sale as void and reject the goods due to the fraudulent conduct of the seller. This ensures that the buyer is protected from unfair and deceptive practices in the marketplace.
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In pretended bidding sale is :a)Voidable at the option of the buyerb)Voidable at the option of the sellerc)It is legal and nothing can be doned)Buyer can ask for the goods at discounted rateCorrect answer is option 'A'. Can you explain this answer?
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