Meaning of Sale by Auction:- A sale by auction is a sale where different individual offer bids for the property and try to outbid each other. The auctioneer marks the completion of auction sale by the fall of the hammer and then the property or goods are given to the purchaser or the highest bidder.
Conditions of sale by auction of the moveable property:-
1. The amount fixed by the auctioneer must be paid in an auction and no individual or person can offer less amount.
2. The purchaser should be the highest bidder. If any errors or objections arise as to the highest bid, the property shall be resold.
3. The purchaser of the property should pay the amount of the property to the auctioneer at the time of sale and leaving no dues. He must pay the full amount of the purchase money. He may pay in cash or by bank draft. And if he fails to pay the full amount then the property can be resold.
4. After payment of the purchase amount of the property, the purchaser has to take necessary measures for the purpose of obtaining or delivery of the property.
5. The person who is intending to buy property in an auction ( Purchaser ) should satisfy himself regarding the correctness and identity of the property because once the purchaser buys the property in a sale by auction then he cannot claim compensation for any objections or errors. Here, the purchaser shall be deemed to have waived all such errors and objections.
6. After the sale is completed the auctioneer must proceed to certify the result as soon as possible and the purchaser should remove the moveable property immediately from the area where the same is stored at his own cost.
There are many other conditions of sale by auction. But the major important conditions are discussed above.
Conditions of sale by auction of government properties:-
1. It shall be deemed that the bidders have full knowledge about the property and read the particulars of the auction and inspected the property before bidding.
2. If any officer who is conducting the sale has reasonable ground then he can refuse to accept the highest bidder and his decision cannot be questioned.
3. After the commencement of the auction, the auction shall be concluded at fall of the hammer and accepted the highest bid recorded as mentioned in the paragraph.
4. When the bid money is accepted it shall not be treated as final acceptance and the purchaser or highest bidder has no power to claim the property or goods unless it is approved by the executive engineer or officers conducting the sale.
5. In a case where there is moveable property, the purchaser should make the full payment of the property which is raised in an auction by him after the fall of the hammer. And when the result of the auction is approved by the officers the purchaser can enjoy the property and he has to remove the property or goods within the specified time mentioned by the officer otherwise he may require to pay damages.
An auction is a process to buy or sell goods or properties in a bid. The highest bidder gets the property or goods if he satisfies all the conditions of the auction. The person who intends to buy the property or goods is known as a bidder. The purchaser should be the highest bidder. If any errors or objections arise as to the highest bid, the property shall be resold. The bidders should have full knowledge about the property and read the particulars of the auction and inspect the property before bidding. The auctioneer marks the completion of auction sale by the fall of the hammer and then the property or goods are given to the purchaser or the highest bidder.