— 457 — 



recalled, in either case before the hammer falls. The auctioneer is 

 liable for any damages which may result from his misdescription of 

 the property, or for fraud or deceit. A buyer injured by such con- 

 duct must recover his damage from the seller, and the seller may 

 recover from the auctioneer what he may be compelled to pay for his 

 misconduct. Two matters which frequently arise in this connection 

 may be mentioned here — pedigree and ownership. These two elements 

 form a part of the value of a horse in these days, and sometimes have 

 much more to do with his worth than do his lungs. If the pedigree 

 of a horse be misstated or falsely represented the sale may be violated. 

 It frequently happens that the fact that some noted horseman owns a 

 horse enhances its value. If a horse be offered for sale and every other 

 material fact about him be as represented except that his ownership be 

 falsely ascribed to some such person, that is enough to warrant the 

 rescission of the sale. And if the buyer supposes the horse to belong to 

 such an owner, when in fact he does not, and the auctioneer knows 

 that he is under this impression, although neither the auctioneer nor 

 any one in his behalf has so represented, if he does not correct the 

 erroneous impression he is liable as for misrepresentation. The same 

 rule with regard to defects applies to the sale by auction that does to 

 ordinary sales. If an opportunity is given for inspection it is the duty 

 of the buyer to make an inspection, and he takes the risk of all dis- 

 cernible defects and blemishes. The seller is, in the absence of any 

 warranty, held as a matter of law to warrant against all latent defects 

 of which he has knowledge. 



The subject of " puffers " or " by-bidders " plays an important 

 part in the law of auctions. While this is an evil which will hardly 

 be encountered at reputable sales, there are enough at which the prac- 

 tice obtains in one form or another to warrant a statement of the rule 

 here. The law holds, as a fundamental principle of all commercial 

 transactions, firmly to the necessity of absolute good faith between the 

 parties, and the practice of bidding at auction sales in behalf of and in 

 the interest of the owner of the property offered for sale without notice 

 that the bid is for the owner is a breach of that good faith which the 

 law requires. The penalty for this in many States is severe, and the 

 civil remedy is harsh. If the buyer wishes he may rescind the con- 

 tract and refuse to take the property. But he is not compelled to do 

 this. In one case the highest bid against a bona fide bidder was $145. 



