Where the owner reserves the right to refuse a bid and the auctioneer has stated that the sale is subject to confirmation by the owner, there is no binding sale until the owner accepts the bid. See, e.g., Moore v Berry, 40 Tenn. App. 1, 288 S.W.2d 465 (Tenn.Ct.App. 1955) (perm. app. denied).
Some courts hold that the advertisement or advance announcement has no significance except to announce that a sale has been set. This approach was cited with approval by the Wyoming Supreme Court in Pitchfork, 615 P.2d 541 at 547.See also 7 Am.Jur.2d Auctions and Auctioneers, ยง 16 (1980), citing Anderson v. Wisconsin C.R. Co., 107 Minn. 296, 120 N.W. 39 (1909), Moore v. Berry, 40 Tenn. App. 1, 288 S.W.2d 465 (1955). Still other courts have held that declarations of the auctioneer subsequent to and at variance with the advertised procedures cannot change the printed terms of such advertisements unless the purchaser has knowledge of the modification.
Rosin v. First Bank of Oak Park, 126 Ill. App.3d 230, 235, 466 N.E.2d 1245, 1249 (1984). See, Cuba, supra; Coleman, 540 S.W.2d at 938 ("`where a right is reserved in the seller to reject any and all bids received, the right may be exercised by the owner even after the auctioneer has accepted a bid, and this applies to the auction of public as well as private property'"); City of New York v. Union News Co., 222 N.Y. 263, 118 N.E. 635 (1918); Eugene Stud Veneer, Inc. v. State Bd. of Forestry, 3 Or. App. 20, 469 P.2d 635 (1970); Moore v. Berry, 40 Tenn. App. 1, 288 S.W.2d 465 (1955); Continental Can v. Commercial Etc., 56 Wn.2d 456, 347 P.2d 887 (1959). As it was here made known both through advertisements and the announcement at the auction that any bids on the lands would have to be confirmed by the probate court, the situation is analogous to reserving a right in the seller to confirm, accept, or rejects the bids.
Finally, this sale was in the context of an auction where the "conditions prescribed by the seller or owner and announced at the time and place of the auction are binding on the purchaser whether or not he knew or heard them." Continental Can Co. v. Commercial Waterway Dist. 1, 56 Wn.2d 456, 459, 347 P.2d 887, 354 P.2d 25 (1959) (quoting Moore v. Berry, 40 Tenn. App. 1, 288 S.W.2d 465 (1955)). See RCW 62A.2-328; Restatement (Second) of Contracts ยง 28, comment e (1981). None of the cases cited by Travis to show the applicability of Berg to this case involve an auction.
There is no showing by any credible evidence that the buyer authorized the auctioneer to change the terms of the sale, after the hammer fell. The defendant cannot, under the facts, rely upon the provision of the contract she signed with the auctioneer which gave her the right to confirm or reject bids. Where the terms announced at the auction sale include the right in the owner to reject bids, that condition is binding on all bidders, whether they heard it or not. Moore v. Berry (1955) 40 Tenn. App. 1, 288 S.W.2d 465. We hold, however, where the right to reject bids is not stated in the printed posters, nor is it announced at the sale, that right cannot be asserted after the bid is accepted by the fall of the hammer or other act of acceptance by the auctioneer.