What happens in an auction when...

[Bob Clayton]

Not an electronic auction, but at a real auction, what happens when someone wins but doesn't pay or is unable to?

[Linas]

Ive often wondered the same thing. Good question.

[Bob Clayton]

The question stemmed from an episode of Family Guy, lol.

[Stanley Design]

Depending on the auction it's usually played by ear. It can be held as a verbal contract or they can go to the next highest bidder if they are still around or they can put it back up on the chopping block if things are still going up. It depends.

[tplyons]

I believed you get kicked in the undercarriage.

[bongomania]

Depends on the auction house. If it's "Ye Olde Barn Auction" then they'll grumble and then probably put the item back in the queue for the next auction. If it's a more serious pro auction house then they may hold you to the verbal contract- you may even be asked to sign an agreement when registering for the auction.

[armywalaby]

Yeah, I think legal action can come after that.

[jonathan_matos5]

i would imagine that the item will go to the next highest bidder or back to the auction block. the bidder could suffer some kind of consequences other than not being able to claim the item that they "won"

[MadMan118]

By placing a bid you are entered into a finical contract to pay up to but not exceeding the amount of your bid. Often times one must sign a contract/waiver to partake in bidding of higher tier items(ie. art, really old stuff, cars, houses). You may also be charged a fee.

[Mark Latimour]

Originally Posted by MadMan118

By placing a bid you are entered into a finical contract to pay up to but not exceeding the amount of your bid. Often times one must sign a contract/waiver to partake in bidding of higher tier items(ie. art, really old stuff, cars, houses). You may also be charged a fee.

+1

It depends a lot on the auction, but for things like land, acceptance of your bid formalises the contract IIRC and therefore you can be sued for breach of contract. Again, IIRC, in land auctions you often have to pay the deposit by the end of the day of the auction. If you don't you'd likely be sued for the costs of holding another auction and possibly for more if the next auction didn't reach a figure as higher as the bid just under yours.

[GeneralElectric]

They shoot you in the knee caps.

[peabody]

Can't you use the, "I didn't mean to bid...I was just scratching my armpit" defense?

[Baryonyx]

Originally Posted by Bob Clayton

The question stemmed from an episode of Family Guy, lol.

Is it the one where Peter buys the vase for $100 Million? I watched that one this morning!

[MadMan118]

Originally Posted by Mark Latimour

+1

It depends a lot on the auction, but for things like land, acceptance of your bid formalises the contract IIRC and therefore you can be sued for breach of contract. Again, IIRC, in land auctions you often have to pay the deposit by the end of the day of the auction. If you don't you'd likely be sued for the costs of holding another auction and possibly for more if the next auction didn't reach a figure as higher as the bid just under yours.

Better said Mark, I'm an accountant, not an law school graduate.

[santucci218]

im pretty sure they step on your junk

[T-Bird]

Hi.

Generally people don't do that. At least not twice.

To avoid getting banned there's the option to convince the second bidder to buy the lot/item/whatever and pay up the balance. No way any auctioneer will let the item slip for a reduced price just because someone refuses to pay.

There's a certain rules about auctions, some written and some unwritten and:" Don't bid unless You can pay" is on them both.

Regards
Sam

[Bob Clayton]

Originally Posted by Baryonyx

Is it the one where Peter buys the vase for $100 Million? I watched that one this morning!

Yup, was on last night too.

[Baryonyx]

Originally Posted by Bob Clayton

Yup, was on last night too.

Now thats good television.

[iamlowsound]

It involves sticks, mushrooms, a purple baseball and your 15 minutes of fame.

lowsound