An auction is usually a process of buying and selling goods or services by offering them up for bids, taking bids, and then selling the item to the highest bidder or buying the item from the lowest bidder. Some exceptions to this definition exist and are described in the section about different types. The branch of economic theory dealing with auction types and participants' behavior in auctions is called auction theory.
A Dutch auction is one of several similar types of auctions for buying or selling goods. Most commonly, it means an auction in which the auctioneer begins with a high asking price in the case of selling, and lowers it until some participant accepts the price, or it reaches a predetermined reserve price. This type of price auction is most commonly used for goods that are required to be sold quickly such as flowers, fresh produce, or tobacco. A Dutch auction has also been called a clock auction or open-outcry descending-price auction. This type of auction shows the advantage of speed since a sale never requires more than one bid. It is strategically similar to a first-price sealed-bid auction.
Carlill v Carbolic Smoke Ball Company[1893] 1 QB 256 is an English contract law decision by the Court of Appeal, which held an advertisement containing certain terms to get a reward constituted a binding unilateral offer that could be accepted by anyone who performed its terms. It is notable for its treatment of contract and of puffery in advertising, for its curious subject matter associated with medical quackery, and how the influential judges developed the law in inventive ways. Carlill is frequently discussed as an introductory contract case.
Offer and acceptance are generally recognized as essential requirements for the formation of a contract. Analysis of their operation is a traditional approach in contract law. This classical approach to contract formation has been modified by developments in the law of estoppel, misleading conduct, misrepresentation, unjust enrichment, and power of acceptance.
Felthouse v Bindley [1862] EWHC CP J35, is the leading English contract law case on the rule that one cannot impose an obligation on another to reject one's offer. This is sometimes misleadingly expressed as a rule that "silence cannot amount to acceptance".
Pharmaceutical Society of Great Britain v Boots Cash Chemists (Southern) Ltd [1953] EWCA Civ 6 is a famous English contract law decision on the nature of an offer. The Court held that the display of a product in a store with a price attached is not sufficient to be considered an offer, and upheld the concept of an invitation to treat.
Partridge v Crittenden [1968] 1 WLR 1204 is an English legal case which was heard by a divisional court of the Queen's Bench Division of the High Court of England and Wales on appeal from Chester magistrates' court, and is well known for establishing the legal precedent in English contract law that advertisements are usually considered to be invitations to treat.
Spencer v Harding (1870) LR 5 CP 561 is an English contract law case concerning the requirements of offer and acceptance in the formation of a contract. The case established that an offer inviting tenders to be submitted for the purchase of stock did not amount to an offer capable of acceptance to sell that stock, but rather amounted to an invitation to treat.
Fisher v Bell [1961] 1 QB 394 is an English contract law case concerning the requirements of offer and acceptance in the formation of a contract. The case established that, where goods are displayed in a shop, such display is treated as an invitation to treat by the seller, and not a contractual offer. The offer is instead made when the customer presents the item to the cashier together with payment. Acceptance occurs at the point the cashier takes payment.
Harris v Nickerson (1873) LR 8 QB 286 is an English law case concerning the requirements of offer and acceptance in the formation of a contract. The case established that an advertisement that goods will be put up for auction does not constitute an offer to any person that the goods will actually be put up, and that the advertiser is therefore free to withdraw the goods from the auction at any time prior to the auction. All three judges concurred but issued separate judgments.
Canadian contract law is composed of two parallel systems: a common law framework outside Québec and a civil law framework within Québec. Outside Québec, Canadian contract law is derived from English contract law, though it has developed distinctly since Canadian Confederation in 1867. While Québecois contract law was originally derived from that which existed in France at the time of Québec's annexation into the British Empire, it was overhauled and codified first in the Civil Code of Lower Canada and later in the current Civil Code of Quebec, which codifies most elements of contract law as part of its provisions on the broader law of obligations. Individual common law provinces have codified certain contractual rules in a Sale of Goods Act, resembling equivalent statutes elsewhere in the Commonwealth. As most aspects of contract law in Canada are the subject of provincial jurisdiction under the Canadian Constitution, contract law may differ even between the country's common law provinces and territories. Conversely; as the law regarding bills of exchange and promissory notes, trade and commerce, maritime law, and banking among other related areas is governed by federal law under Section 91 of the Constitution Act, 1867; aspects of contract law pertaining to these topics are harmonised between Québec and the common law provinces.
In English contract law, an agreement establishes the first stage in the existence of a contract. The three main elements of contractual formation are whether there is (1) offer and acceptance (agreement) (2) consideration (3) an intention to be legally bound.
A contract is an agreement that specifies certain legally enforceable rights and obligations pertaining to two or more parties. A contract typically involves consent to transfer of goods, services, money, or promise to transfer any of those at a future date. The activities and intentions of the parties entering into a contract may be referred to as contracting. In the event of a breach of contract, the injured party may seek judicial remedies such as damages or equitable remedies such as specific performance or rescission. A binding agreement between actors in international law is known as a treaty.
Payne v Cave (1789) 3 TR 148 is an old English contract law case, which stands for the proposition that an auctioneer's request for bids is not an offer but an invitation to treat. The bidders make the offers which can be accepted by the auctioneer.
Daulia Ltd v Four Millbank Nominees Ltd [1977] is an English contract law case, concerning unilateral contracts, and when embarking on the performance of an act for which an offer is open, at what point the offer may be withdrawn. In particular, Goff LJ observed that there would be a duty to not prevent full performance of terms in a unilateral offer, once performance had begun.
Lefkowitz v. Great Minneapolis Surplus Store, Inc 86 NW 2d 689 is an American contract law case. It concerns the distinction between an offer and an invitation to treat. The case held that a clear, definite, explicit and non-negotiable advertisement constitutes an offer, acceptance of which creates a binding contract. Furthermore, it held that an advertisement which did not clarify the terms of its bargains, such as with fine print, could not then be modified with arbitrary house rules.
Blackpool & Fylde Aero Club v Blackpool Borough Council [1990] EWCA Civ 13 is a leading English contract law case on the issue of offer and acceptance in relation to an invitation to tender. In it the Court of Appeal of England and Wales decided that tenders and requests for tenders are accompanied by a collateral contract implying that the requestor will give due consideration to any timely bid.
Barry v Davies [2000] EWCA Civ 235, [2000] 1 WLR 1962 is an English contract law case which established and confirmed that auction goods being sold without a reserve must be sold to a genuine highest bidder. The principle is subject to exceptions based on illegality, such as illicit goods, a seller without the right to sell the goods, or a buyer without the money or right to buy the goods.
An invitation to tender is a formal, structured procedure for generating competing offers from different potential suppliers or contractors looking to obtain an award of business activity in works, supply, or service contracts, often from companies who have been previously assessed for suitability by means of a supplier questionnaire (SQ) or pre-qualification questionnaire (PQQ).
Gregory v Rangitikei [1995] 2 NZLR 208, (1994) 6 TCLR 199 is a cited case in New Zealand regarding the sale of property by tender, confirming that an offer inviting tenders to be submitted for the purchase of something did not amount to an offer capable of acceptance to sell that property, but instead merely amounted to an invitation to treat. It reinforces the English case of Spencer v Harding (1870) LR 5 CP 561. However the Court also ruled that there was a breach of the Fair Trading Act (1986).
