Multiple choice

An auction sale is complete on the

  1. delivery of goods

  2. payment of price

  3. fall of hammer

  4. none of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

An auction sale is a special mode of sale where goods are sold to the highest bidder. The contract is complete when the auctioneer announces the completion of the sale by the fall of the hammer. This fall signifies acceptance of the highest bid and formation of the contract. Delivery or payment may follow but are not what completes the sale. The fall of hammer is the critical moment in auction law - it's when the auctioneer accepts the bid, creating a binding contract between the auctioneer and the buyer.

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