Commercial law - case study Essay Example | Topics and Well Written Essays - 1000 words

Commercial law - case study - Essay Example As such, there is no completed contract between Wendy and Fantastic Furniture Auctioneers. In my opinion, since there is no completed contract of sale between Wendy and Fantastic Furniture Auctioneers, there is then no contractual liability incurred by the latter for the expenses and losses of Wendy. â€Å"(1) Any person, firm or corporation who knowingly makes or publishes or causes to be made or published in the course of business as an auctioneer any representation or statement which is false or misleading in any material particular, in relation to any lot put up for sale at an auction sale, whether as to the value, composition, structure, description, character or quality, date, manufacture, or origin of that lot or otherwise, commits an offence. â€Å"(2) It shall be a defence to a charge for an offence against this section of which the making or publication of a false or misleading representation or statement is an ingredient to prove that the accused believed on reasonable grounds that the representation or statement was not false or misleading. As applied to the given facts, therefore, Fantastic Furniture Auctioneers incur liability under Section 24 (2) of the Auction Sales Act for misrepresentation as to the date of the auction. However, it is entitled to interpose the defence that the alleged â€Å"representation or statement was not false or misleading.† The first issue under this item is the effect of Sallys yelling that her bid is withdrawn right before the hammer fell. The second issue is the effect of Sallys withdrawal, assuming it is valid, on the bid of Sam. â€Å"(2) A sale by auction is complete when the auctioneer announces its completion by the fall of the hammer or in other customary manner: until such announcement is made any bidder may retract his bid.† As applied to the facts, Section 60, subsection (2) is the rule governing the issue on the effect of Sallys yelling that her bid is withdrawn right before the