Talking about bidding on auctions. Is there an entry fee? How does the organizing body know that you have the money that you are bidding for? What happens when you win and you don’t have the money? Are there laws preventing such?
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Assuming you are talking about auctions here
There usually isn’t a fee to enter but there can be. You do (usually) have to register prior to being allowed to bid. The organisation running the auction will likely have some sort of criteria required before you’re allowed to register your intent to participate in the auction and this is how they will filter out who does and doesn’t have enough money to pay for what is up for auction. It will depend on what is up for sale on how strict they are – Ebay for example will just require a credit card or paypal account but a high end art auction or real estate will require a lot more information
If you happen to win and don’t have the money than there absolutely are laws preventing this. The actual laws depend on where the auction is being held but essentially placing a winning bid is the same as signing a contract and if you fail to follow through on that contract you will face the penalties for breach of contract.
Assuming you are talking about auctions here
There usually isn’t a fee to enter but there can be. You do (usually) have to register prior to being allowed to bid. The organisation running the auction will likely have some sort of criteria required before you’re allowed to register your intent to participate in the auction and this is how they will filter out who does and doesn’t have enough money to pay for what is up for auction. It will depend on what is up for sale on how strict they are – Ebay for example will just require a credit card or paypal account but a high end art auction or real estate will require a lot more information
If you happen to win and don’t have the money than there absolutely are laws preventing this. The actual laws depend on where the auction is being held but essentially placing a winning bid is the same as signing a contract and if you fail to follow through on that contract you will face the penalties for breach of contract.
Depending on the particulars, the auctioneer might demand proof of funds. [Here’s what that looks like](https://rmsothebys.com/media/177407/2020-us-proof-of-funds.pdf) for Sotheby’s classic car division.
Depending on the particulars, the auctioneer might demand proof of funds. [Here’s what that looks like](https://rmsothebys.com/media/177407/2020-us-proof-of-funds.pdf) for Sotheby’s classic car division.
I think a lot depends on what type of auction. Here, (Canada), at estate auctions, you sign up to get a placard with a number on it. When you bid, you hold up the placard. If you win the item, then at the end of the auction you have to pay for it, in cash or by credit card, for example. If you can’t pay for it, you don’t get to take it, and they add it to their next auction. And they will probably ban you from future auctions.
I think a lot depends on what type of auction. Here, (Canada), at estate auctions, you sign up to get a placard with a number on it. When you bid, you hold up the placard. If you win the item, then at the end of the auction you have to pay for it, in cash or by credit card, for example. If you can’t pay for it, you don’t get to take it, and they add it to their next auction. And they will probably ban you from future auctions.
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