A New York case in 2012 which shocked the auction industry was fortunately overturned recently. The subject involved the necessity to identify the seller at auction per the statute of frauds to make such the purchase contract enforceable. We wrote about the original case:https://mikebrandlyauctioneer.wordpress.com/2012/12/01/identify-parties-to-auction-sale-contract/
Auctioneers deal in all kinds of property. Week to week, it could be a car, gun, coin, diamond ring, lawn tractor, horse … or even $8,000: the list goes on. Any of these personal property items could be lost, misplaced and/or abandoned. What does all that mean for an auctioneer?
Property is generally deemed to have been …
Concluding their 2017 auctions for the week ending Dec 21, Sotheby’s reportedly reached annual sales totalling US$7.4 billion. The figure is said to show a 13.1% increase over the results of 2016.
Sotheby’s Hong Kong also claims to lead all international houses in Asia with an annual auction total of S$850 million. Asian clients contributed over 30% to Sotheby’s worldwide sales this year, reaching a total of US$ 1.6 billion. Online buyers have spent more than US$ 180 million, with 23% of all lots sold, purchased online.
Bid calling is made up of offers and acceptances — which forms contracts from the first bid until the last. We discussed this in more detail here:https://mikebrandlyauctioneer.wordpress.com/2014/08/11/bid-calling-is-just-numbers/
Selling absolute (without reserve) dictates that the subject property is selling to the highest bidder. In other words, the buyer must be the one offering the most consideration.
However, does selling absolute mandate you reopen the bid if another bid comes in as the hammer is falling, after the hammer falls, after 24 hours, 3 days, a month …?
We have been discussing “cut bids” (most notably here:https://mikebrandlyauctioneer.wordpress.com/2017/11/21/as-the-auctioneer-do-you-have-to-take-a-cut-bid/) and a few states in the United States have enacted state law which says, essentially, “The auctioneer may establish reasonable bid increments.”
We’ve discussed “cut bids” and “refusing bids” and the like before. So, here’s the bottom line of sorts. As an auctioneer/seller if you are selling a lot (property) without reserve (absolute) and put it up for bid — and receive a bid within a reasonable time — you are bound to sell it to the highest bidder.
If you don’t, your seller is open to a lawsuit by the high bidder seeking specific performance. In other words, the high bidder (even if not the buyer) can sue the seller for title. The two most notable cases regarding are here:
Sotheby’s announces the appointment of Jonathan Wong as gallery director, responsible for originating and presenting selling exhibitions for Sotheby’s S|2 Gallery in Hong Kong today. He will also continue to support Sotheby’s auctions of Contemporary Art in Asia.