Section 64 of The Sale of Goods Act, 1930 in hindi
In the case of a sale by auction
- (1)Where goods are put up for sale in lots, each lot is prima facie deemed to be the subject of a separate contract of sale;
- (2)the sale is complete when the auctioneer announces its completion by the fall of the hammer or in other customary manner; and, until such announcement is made, any bidder may retract his bid;
- (3)a right to bid may be reserved expressely by or on behalf of the seller and, where such right is expressly so reserved, but not otherwise, the seller or any one person on his behalf may, subject to the provisions hereinafter contained, bid at the auction;
- (4)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;
- (5)the sale may be notified to be subject to a reserved or upset, price;
- (6)if the seller makes use of pretended bidding to raise the price, the sale is voidable at the option of the buyer.
Summary
- If goods are sold in separate lots, each lot is treated as a separate contract of sale.
- The sale becomes final when the auctioneer falls the hammer or announces the end in another custom way.
- Any person making a bid can take it back as long as the hammer has not yet fallen.
- A seller can only bid if they clearly stated in the notice that they have the right to bid.
- If a seller bids secretly without giving notice, the buyer can treat the sale as a fraud.
- The auction can have a minimum price, which is known as a reserved or upset price.
- If a seller uses fake bids to drive up the price, the buyer can choose to cancel the deal.
Practical examples
FAQ
1. When is an auction sale considered complete under Section 64 of the Sale of Goods Act?
Under Section 64 of the Sale of Goods Act, 1930, the sale is complete when the auctioneer announces it by the fall of the hammer or other customary manner.
2. Can a bidder withdraw their offer in an auction under the Sale of Goods Act?
Yes, Section 64 of the Sale of Goods Act, 1930, allows any bidder to retract their bid until the auctioneer announces the sale is finished.
3. What happens if a seller bids on their own goods under Section 64 of the Sale of Goods Act?
If the right to bid was not notified, the sale can be treated as fraudulent by the buyer according to Section 64 of the Sale of Goods Act, 1930.
4. How does the Sale of Goods Act treat different lots in one auction under Section 64?
Section 64 of the Sale of Goods Act, 1930, states that each lot is prima facie (at first sight) deemed to be the subject of a separate contract of sale.
Test yourself
Q1.According to Section 64 of the Sale of Goods Act, 1930, what happens if an auctioneer knowingly takes a bid from the seller without prior notice?
Q2.Under Section 64 of the Sale of Goods Act, 1930, when can a seller bid at their own auction?
Q3.What term does Section 64 of the Sale of Goods Act, 1930, use for a minimum price?
Q4.If there are five different boxes of books in an auction, how many contracts exist under Section 64 of the Sale of Goods Act, 1930?