Barry v Davies [2000]
Facts of the case The defendant auctioneers under the instruction of the custom and excise conducted an auction for 2 new machines which were worth about 14000 gbp each without reserve. The claimant made a bid of 200 gbp for each of the machine but the auctioneer refused to accept the bid because the bid was too low. The auctioneer withdrew the machines. The machines were later sold for 1500 gbp each later. The claimant sued the defendant for breach of the contract. The trial judge based on collateral contract where the auctioneer supposed to sell to the highest bidder held in the claimant favor. Damage worth 27600 gbp was awarded to the claimant. The decision was later appealed by the defendant contending an auction without reserve did not create an obligation to sell to the highest bidder and no consideration for the promise of the auctioneer. Held Following Warlow v Harrison, the court of appeal dismissed the appeal. A sale without reserve means making a binding commitment to sell to the highest bidder. There was an obligation under the collateral warranty for the auctioneer to sell to the highest bidder and failure would amount to breach. There was a consideration for the auctioneer’s promise. It was in the form of detriment to the bidder when the bid was accepted and benefit for the auctioneer due to the sale. Conclusion An auctioneer who makes a sale ‘without reserve’ is making a binding commitment to sell to the highest bidder.
0 Comments
Leave a Reply. |
Kembara's Legal InfosInfos about legal issues and legal concepts that are available online . Archives
February 2023
Categories
All
|