EEPOSITORIES AND AUCTIONS. 



45 



(3) " Where a sale by auction is not notified to be sub- 

 ject to a right to bid on behalf of the seller, it shall not be 

 lawful for the seller to bid himself or to employ any person 

 to bid at such sale, or for the auctioneer knowingly to take 

 any bid from the seller or any such person. Any sale con- 

 travening this rule may be treated as fraudulent by the 

 buyer." 



(4) " A sale by auction may be notified to be subject to 

 a reserved or upset price, and a right to bid may also be 

 reserved expressly by or on behalf of the seller. When a 

 right to bid is expressly reserved, but not otherwise, the 

 seller, or any one person on his behalf, may bid at the 

 auction." 



The law is so jealous of the rights of bona fide bidders, 

 that it has been held as doubtful whether a previous private 

 warranty to a person who became an unsuccessful bidder 

 would not avoid the sale to a third party ; for it was like 

 puffing, and in a sale by auction all have a right to suppose 

 that they are bidding upon equal terms (x). 



An agreement made by two persons not to bid against 

 each other, but that one of them should bid up to a certain 

 sum, and that the lot should subsequently be divided 

 between them, is not illegal, and therefore furnishes no 

 ground for opening the biddings, or annulling the 

 sale {y). 



A mock auction with sham bidders, for the purpose of 

 selling goods at prices grossly above their worth, is an 

 off'ence at common law, and the persons aiding and abetting 

 such a proceeding may be indicted for a conspiracy with 

 intent to defraud (s). 



A purchaser at an auction can, before payment, make a 

 complete bargain and sale of the article which he has 

 bought to a third party, so as to maintain an action for 

 goods bargained and sold («). 



Where a party refuses to take goods he has purchased, 

 they should be resold, and he will be liable to the loss, if 

 any, upon the resale (b) . 



Thus, in Scotland, where some horses were sold by 

 pubHc auction without stipulation as to credit, and the 



Eitect of pre- 

 vious private 

 "warranty. 



Agreement 

 not to bid 

 against eacli 

 other. 



Mock 

 auctions. 



Purchaser 

 may transfer 

 his bargain . 



Where party 

 refuses to 

 take goods. 



Uoods resold 

 without com- 



[x) Sopkins V. Tanqueray, 23 L. 

 J., C. P. 162. 



(y) In re Carew's Trusts, 26 Beav. 

 187. 



(z) Bey. Y. Zewis, 11 Cox, C. C, 

 484. 



(a) Scott V. England, 2 D. & L. 

 520. See also Beffer v. Martyn, 36 

 L. J., Ch. 372. 



(i) See Maclean v. Dunn, 4 Bing. 

 729 ; Story on Sales, 348. 



