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Auction Without Reserve Contract Law
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Multi-State
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US-01802BG
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FAQ
If you bid below the reserve price, you'll see a "Reserve not met" message. This means that even if you're the highest bidder at the end of the auction, you won't win the item. Sellers can lower their reserve price during the auction or make a Second Chance Offer once it ends.
Updated July 14, 2020: Auction contracts are agreements between a seller and a buyer, in which the seller agrees to sell an item or property for the highest bid and the buyer agrees to pay it.
When a car is being auctioned at No Reserve, it is for sale with no restrictions. The highest bidder will get the car with zero thresholds to meet.
In an auction, the seller is not typically required to disclose the reserve price to potential buyers. If the reserve price is not met, the seller is not required to sell the item, even to the highest bidder. As a result, some buyers dislike reserve prices as they encourage bidding at levels that may not win.
When a car is being auctioned at No Reserve, it is for sale with no restrictions. The highest bidder will get the car with zero thresholds to meet.
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