The bidder at a
house auction is making a public offer for the house in response to
the auctioneer's invitation
Because the bid is an offer
only, it can be retracted at any time before the fall of the hammer.
It does not matter how a bid is made as long as it is an effective
bid. However, on the fall of the hammer there is a binding contract
between the owner and the successful bidder. Therefore, a buyer
cannot be gazumped
under the auction process.
notified. the owner or his agent (dummy bidder) has a right to bid at
the auction. However, many states/territories have introduced a more
restrictive auction system with stricter controls on bidders. In nSW a
bidder must register with the agent before allowed to bid.
bidding is illegal.