Auction Terms and Conditions (Sale of Goods)
An Auction Terms and Conditions (Sale of Goods) document sets out the framework for the sale of goods by physical auction.
(0 reviews)
Last updated January 13, 2025
Under 10 minutes
Suitable for Australia
Written by
Edwin Montoya Zorrilla
Reviewed by
Damin Murdock
Document Overview
These terms and conditions set out the framework for sale of goods by physical auction.
Where goods are sold by way of auction, each item or lot put up for auction is the subject of a separate contract of sale. The contract is completed by the fall of the auctioneer’s hammer, or in other customary manners, such as the auctioneer declaring the item sold after closing the bidding.
What does this Auction Terms and Conditions (Sale of Goods) cover?
- the seller's right to bid at auction;
- reserve price;
- deposit;
- the authority of the auctioneer; and
- payment methods.
How are auctions regulated by law?
State Sale of Goods legislation applies to items sold at auction. These laws primarily impose rights and responsibilities upon sellers and purchasers to ensure that sale contracts are observed by both parties.
The Australian Consumer Law (ACL) applies to items sold auction. In particular, sellers should be wary that any additional contracts made at auctions do no impose unfair contract terms. This terms and conditions meets the requirements of the unfair contract terms regime. The ACL does not impose mandatory consumer guarantees to items sold at auction regarding matters such as acceptable quality and fitness for purpose.
The Legal Risk Score of a Auction Terms and Conditions (Sale of Goods) Template
Our legal team have marked this document as medium risk considering:
- Buyers must rely solely on their own inspection of items, as no claims can be made against faults or misdescriptions after purchase, which could lead to unexpected liabilities or dissatisfaction.
- The auctioneer has broad discretion to manage bids and the auction process, including the right to refuse bids and resolve disputes, which could potentially disadvantage some participants.
- Once an item is sold, the risk immediately transfers to the buyer, including any potential damages or losses that might occur after the auction, without the guarantee of recourse against the seller or auctioneer.
Auction Terms and Conditions (Sale of Goods) Checklist
Complete your free Auction Terms and Conditions (Sale of Goods) with our checklist
Verify Payment and Collection Terms
Ensure that all payments are completed and that the collection of purchased lots is arranged within the specified days after the auction.
Confirm Lot Details and Auctioneer Discretion
Double-check the details of the lots purchased and be aware of the auctioneer's discretionary powers, including the handling of bids and resolution of disputes.
Review Risk Transfer Conditions
Understand that the risk of the lot transfers to the buyer once the auction hammer falls, making it crucial to arrange for immediate protection or insurance of the purchased items.
View Sample Auction Terms and Conditions (Sale of Goods)
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