Warlow v Harrison
1859 · 1 E & E 309; 120 ER 925
Posted By lanbuk.com
- Facts
- A house was advertised for auction without reserve. The owner was allowed to bid. The stopped bidding and sued the auctioneer.
- Issue
- Does 'without reserve' bind the auctioneer?
- Held
- On the pleadings the plaintiff failed, but the court said a correctly pleaded claim would succeed. The auctioneer promises the highest bidder that the sale will be without reserve.
- Principle
- An auction without reserve is a collateral contract with the highest bona fide bidder.
- Why it matters
- It is the source of the rule confirmed in Barry v Heathcote Ball.
Words and Latin in this note
- Bona fide purchaser
- A person who buys a legal estate in good faith, for value, without notice of an earlier equitable right. That earlier right does not bind them. Open the note.
For study only. By lanbuk.com. Always check current sources and consult a qualified professional.