Auction offer accepted by first bidder, contract breached by new bid?

If a contract is formed by acceptance of two parties, why is accepting a higher bid in an auction not considered a breach of contract between the auctioneer and the first bidder?

David S2013-03-07T05:09:47Z

Favorite Answer

There is no contract until the gavel falls. That's the nature of auctions.

Fred2013-03-07T12:26:03Z

B/c it's an auction? And there aren't 2 parties of acceptance. There is an offerer and an acceptor. They're not the same. It's the person making the offer that creates the power of acceptance.