"where the sale is not notified to be subject 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; and any sale contravening this rule may be treated as fraudulent by the buyer;"

Can anyone explain this in simple terms and if possible with an example.


The seller may not bid (on item referred to) unless notification (in unspecified manner) has been given that the seller retains the right to bid. The seller also may not employ a person to bid on his/her behalf unless such notification is given. The auctioneer may not take such bids, if he knows that the bid is forbidden in this way. A sale violating this rule is fraudulent.

This is a widespread rule: it means that if I'm selling my car at an auction, I can't bid on the car, or get someone to bid for me, unless I give notice that I'm doing that. I might do so in order to get a higher sale price (as long as I don't get stuck as the highest bidder); instead, there is the reserve / upset price clause allowing a minimum sale price.

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