auction (auction sale)

A public sale in which a property (or an article) is sold in a gathering of potential buyers who make public bids and generally, to the highest bidder.

An auction is an invitation to the public to make an offer for the purchase of the property offered for sale. That is, an invitation to treat.

Normally successive and increasing bids are made with the subject of the auction being knocked down to the highest bidder. The standard contract for the sale of real estate allows for sale by public auction. The auctioneer must act according to the instructions of his principal. For example, not to accept a bid below a reserve price.