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.