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CMA Foundation · Fundamentals of Business Laws and Business Communication · Sale of Goods Act, 1930

In an auction, the notice of sale states that the seller reserves the right to bid. Which statement is correct under the Sale of Goods Act, 1930?

Where the right to bid is expressly reserved, the seller or any one person on his behalf may bid at the auction. Multiple representatives are not allowed, and without an express reservation the seller cannot bid at all.

  1. AThe seller or any one person on his behalf may bid, since the right was expressly reservedCorrect
  2. BThe seller and any number of persons on his behalf may bid
  3. COnly the auctioneer may bid on the seller's behalf
  4. DThe seller may bid only after the hammer has fallen

Explanation

Section 64(3) allows a right to bid to be reserved expressly by or on behalf of the seller. Where it is so reserved, the seller or any one person on his behalf may bid. Allowing any number of persons is wrong because the section permits only one person besides the seller.

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