Section 3 Rights of seller of goods by auction where agreement subsists that some person shall abstain from bidding for the goods.

Where goods are purchased at an auction by a person who has entered into an agreement with another or others that the other or the others (or some of them) shall abstain from bidding for the goods (not being an agreement to purchase the goods bona fide on a joint account) and he or the other party, or one of the other parties, to the agreement is a dealer, the seller may avoid the contract under which the goods are purchased.

Where a contract is avoided by virtue of the foregoing subsection, then, if the purchaser has obtained possession of the goods and restitution thereof is not made, the persons who were parties to the agreement that one or some of them should abstain from bidding for the goods the subject of the contract shall be jointly and severally liable to make good to the seller the loss (if any) he sustained by reason of the operation of the agreement.

F1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

In this section, “dealer” has the meaning assigned to it by section 1(2) of the Auctions (Bidding Agreements) Act 1927.