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Warlow V Harrison

The document summarizes two court cases regarding auctions without reserve: 1) In Warlow v Harrison, the highest bidder sued after losing the auction, but the court found no contract existed because the auctioneer did not accept the highest bid by dropping the hammer. 2) In Barry v Davies, the court followed the precedent set in Warlow v Harrison and found that advertising an auction without reserve constituted an offer, which was accepted when the highest bidder bid. When the auctioneer refused the highest bid, it breached the contract. The highest bidder was awarded damages.

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3K views2 pages

Warlow V Harrison

The document summarizes two court cases regarding auctions without reserve: 1) In Warlow v Harrison, the highest bidder sued after losing the auction, but the court found no contract existed because the auctioneer did not accept the highest bid by dropping the hammer. 2) In Barry v Davies, the court followed the precedent set in Warlow v Harrison and found that advertising an auction without reserve constituted an offer, which was accepted when the highest bidder bid. When the auctioneer refused the highest bid, it breached the contract. The highest bidder was awarded damages.

Uploaded by

ABDOULIE
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Warlow v Harrison (1859) 1 E & E 309

Facts:

A public auction of a horse, without reserve, was advertised by the defendant, an auctioneer. The
plaintiff bid 60 guineas and the owner of the horse bid 61 guineas. There were no further bids
and the defendant put down his hammer on the bid for 61 guineas. The plaintiff claimed the
horse should be his as he was the highest bona fide bidder.

Issue:

Was there a contract for sale?

Held:

The advertisement , as it included the words without reserve, was an offer to sell to the highest
bona fide bidder. The defendant was in breach of that promise. It was an offer of a unilateral
contract as the defendant bound himself to sell to the highest bidder.

The plaintiff had performed the required act (made the highest bid). However, because the
hammer had not been put down on the plaintiff's bid there was no acceptance of his offer.
Therefore, there was no contract for the sale.

The plaintiff was only entitled to sue the defendant for the loss of the opportunity to buy the
horse.

Barry v Davies (Heathcote Ball & Co.) [2000] 1 WLR 1962

Facts:

The defendant, the auctioneers, were instructed to sell two machines used in the motor industry.
The claimant was told the sale would be without reserve.

The claimant was the highest bidder, bidding £200 for each. The defendant refused the claimant's
bid and withdrew the lots from auction as the machines were worth £14000 each. The claimant
sought damages for breach of contract.

Issue:

Was there an offer made by the defendant?

Held:

The court followed Warlow v Harrison and found that there was an offer by the defendant
because the auction was without reserve. The claimant had accepted by making the highest bid.
Therefore, the defendant was in breach of contract.
The claimant was awarded £27600 in damages. The cost of buying the machines (£28000) minus
his bid of £400, in order to compensate him for his loss due to the breach of contract.

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