In an auction with reserve,a contract is formed only when the auctioneer strikes the gavel down or indicates acceptance by some other means.

Question

Quizplus · Accepted Answer

In an auction with reserve, the bidding process can continue until the reserve price is met, but the contract is only formed once the auctioneer indicates acceptance by striking the gavel down or through some other means. Until this happens, the auctioneer can withdraw the item from the auction or continue to solicit higher bids.

In an Auction with Reserve,a Contract Is Formed Only When