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.
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