Auction Contract, Agency, and Bidder Registration
This domain tests the seller-auctioneer contract, the auctioneer's agency duties, and how bidder registration fits into the sale. The core document is a written consignment or auction agreement stating the parties, property, commission, buyer's premium, reserve or absolute status, expenses, payment and removal terms, seller representations, authority to sell, and cancellation or dispute terms. Clear written terms protect both sides when oral instructions change.
Agency and contract rules
- The auctioneer is ordinarily the seller's agent, not the buyer's agent. Fiduciary duties include loyalty, confidentiality, disclosure of material conflicts, and accounting for money.
- The auctioneer's authority is limited by the contract and by statute. A statement that the seller will sell at any price does not override a written reserve.
- If the auctioneer has an ownership interest in the goods or represents both sides, that conflict must be disclosed before bidding.
- Bidder registration should capture legal name, contact information, payment method, and a bidder number. For online bidding, verify identity and obtain consent to the terms. Registration is evidence of bidding capacity and agreement to terms; it is not itself a sale contract.
- Terms announced before bidding, including the buyer's premium, payment deadline, and reserve status, control the sale.
Worked example
A seller orally tells the auctioneer to take any offer, but the signed consignment says the reserve is $10,000. A bid of $9,500 is received. The auctioneer must follow the written reserve and announce no sale unless the seller lawfully changes the written terms before bidding closes. Relying on the oral instruction creates a dispute over commission and buyer expectations.
Traps
Do not confuse bidder registration with a completed sale. Do not use reserve language loosely when the seller wants an absolute auction. Do not fail to disclose a dual agency or personal interest.