Auction buying – which game rules are you playing?

legal updates

The traditional motor auction houses exclude Sale of Goods rights (satisfactory quality/fitness for purpose etc) for dealers because the Unfair Contract Terms Act 'UCTA', allows them to do so.

Read our disclaimer keyboard_arrow_down

This website content is intended as a general guide to law as it applies to the motor trade. Lawgistics has taken every effort to ensure that the contents are as accurate and up to date as at the date of first publication.

The laws and opinions expressed within this website may be varied as the law develops. As such we cannot accept liability for or the consequence of, any change of law, or official guidelines since publication or any misuse of the information provided.

The opinions in this website are based upon the experience of the authors and it must be recognised that only the courts and recognised tribunals can interpret the law with authority.

Examples given within the website are based on the experience of the authors and centre upon issues that commonly give rise to disputes. Each situation in practice will be different and may comprise several points commented upon.

If you have any doubt about the correct legal position you should seek further legal advice from Lawgistics or a suitably qualified solicitor. We cannot accept liability for your failure to take professional advice where it should reasonably be sought by a prudent person.

All characters are fictitious and should not be taken as referring to any person living or dead.

Use of this website shall be considered acceptance of the terms of the disclaimer presented above.

The Lawgistics rough guide to auctions is very simple.  If you buy from an auction you are governed by the terms and conditions in the small print of the auction but if you buy outside of the auction then it depends what terms you have agreed, before you buy, with the seller.   

The traditional motor auction houses exclude Sale of Goods rights (satisfactory quality/fitness for purpose etc) for dealers because the Unfair Contract Terms Act ‘UCTA’, allows them to do so and it satisfies a test of reasonableness.   So the terms of sale are not implied but you are subject to the lengthy written terms and conditions and you are limited to the descriptions used on Auction Entry Forms or read out by the auctioneer.   

If the car is properly described but also a ‘bag of nails’ then you have little chance.   The same applies for internet auctions business to business so be very wary of buying at a distance, through your PC.  It’s fraught with danger, unless you have some confidence in the seller and the descriptions.

On the other hand, if you buy outside auction and not under ‘Trade Sale’ terms then you have the same Sale of Goods rights as a normal private customer.   As a business to business sale, though the careful business seller will most likely restrict rights, as is allowed in such a transaction.

WeRecruit Auto LtdPermanent Automotive Recruitment from an experienced and trustworthy recruitment partner.

We cover roles within all departments and sectors of the Automotive industry, and are here to listen to your specific needs and find the most suitable candidates to fit your business.

Dennis ChapmanIn remembrance of Dennis Chapman 1951 -2015Read More by this author

Related Legal Updates

Proving the ‘chain of custody’ can be a challenge

Conflicting interests on a used car can turn a simple purchase into a legal minefield. Here’s how to evidence the chain, challenge a finance claim, and spot the red flags before you hand over the cash.

WhatsApp chats can seal the deal. Here’s why that matters for distance sales

A 2025 High Court case confirmed that a short WhatsApp exchange can form a binding contract. Here is what that means for distance sales in motor retail, including why collection from your site does not change the status of the deal.

When principle costs you the case

What started as a bold claim ‘on principle’ quickly unravelled into a costly courtroom lesson in getting your facts, and your legal standing, straight.

Off-Premises Sales

The issue that confuses here is the legalise words “concluding a contract” which is the same as forming a contract.

A settlement agreement may not protect you

An agreement does not need to be in writing to be binding, but it is much easier to prove the terms of an agreement if there is a documented paper trail.

What are you signing up for?

Long story short, you should carefully read any T&Cs provided to you and seek to ensure you understand any implications that your agreement may impose on you in the future.

Be careful of what you promise

Estoppel by representation is a rule that prevents someone from denying a set of facts or a statement that they previously represented as being true.

Get in touch

Complete the form to get in touch or via our details below:

Phone
01480 455500
Address

Vinpenta House
High Causeway
Whittlesey
Peterborough
PE7 1AE

By submitting this quote you agree to our Terms & Conditions and Privacy & Cookies Policy.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.