AUCTIONS Flashcards
1
Q
How many auction types?
A
2
2
Q
There are Two Types of Auctions
A
(1) an Auction with Reserve;
(2) an
Auction without Reserve
3
Q
AUCTION WITH RESERVE
A
Most auctions are an AUCTION WITH RESERVE, the auctioneer is inviting offers to
buy the item and the item for sale has a minimum price. The bidder is making an
offer to buy. If the auctioneer accepts the highest bid, then a contract is formed.
4
Q
AUCTION WITHOUT RESERVE
A
In an AUCTION WITHOUT RESERVE, the auctioneer is making an offer to sell to
the highest bidder. When the bidding has ended and there are no higher
bids, a contract has been formed between the auctioneer and the high bidder. (ie
the safe case)
