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Consideration of Ebay Bids

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gaspi101

Guest
What is the name of your state? Florida

I have read again and again everywhere that ebay bids are legally binding contracts, and that the click of the "submit bid" button constitutes an electronic signature. I cannot possibly see this as enforceable, in light of lack of consideration by the bidding party. I can see how one could obtain a court judgement if the item is substantial enough and the party auctioning can argue detrimental reliance. But that seems like a hell of a stretch for a CD or even a $500 car. I guess here is my question: If one cross bids for the same item (like bidding for 10 identical items from different sellers), does Restatement of Contr. 75 allow for this? If so, can you uphold eBay's rules and policies? Is there any case law anywhere for this? Can't find. You attorneys rock. Thanks so much.
 
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HomeGuru

Senior Member
gaspi101 said:
What is the name of your state? Florida

I have read again and again everywhere that ebay bids are legally binding contracts, and that the click of the "submit bid" button constitutes an electronic signature. I cannot possibly see this as enforceable, in light of lack of consideration by the bidding party. I can see how one could obtain a court judgement if the item is substantial enough and the party auctioning can argue detrimental reliance. But that seems like a hell of a stretch for a CD or even a $500 car. I guess here is my question: If one cross bids for the same item (like bidding for 10 identical items from different sellers), doesn't the Restatement

**A: what?
 
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gaspi101

Guest
I'm asking if one makes maky bids on one item, cross-bidding, if it legally can be held to be an enforceable promise, in light of Restatement 75. Especially true given that sellers can always choose to disregard your bet, even if you're the highest bidder at the end of the auction. If they can do this, then their offer doesn't enable me to create a contract by bidding. My bid is a counter-offer, and their acceptance of my bid is the real acceptance? I guess this cross-bidding and the seller's disregard to highest bids creates a conflict with the very little I know and what I read about eBay bidding. Thanks again! Hopelessly lost,
Gaspi
 

BelizeBreeze

Senior Member
gaspi101 said:
I'm asking if one makes maky bids on one item, cross-bidding, if it legally can be held to be an enforceable promise, in light of Restatement 75. Especially true given that sellers can always choose to disregard your bet, even if you're the highest bidder at the end of the auction. If they can do this, then their offer doesn't enable me to create a contract by bidding. My bid is a counter-offer, and their acceptance of my bid is the real acceptance? I guess this cross-bidding and the seller's disregard to highest bids creates a conflict with the very little I know and what I read about eBay bidding. Thanks again! Hopelessly lost,
Gaspi
And why don't you tell us what eBay told you.
 
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gaspi101

Guest
eBay told me to look at the Terms and Conditions. No help there. These just state that a bid creates an enforceable contract. Again, is there any case law to support this anywhere? is there a response to the previous questions? Thanks!
 

the walrus

Junior Member
Gee, if you want to use EBay, play by their rules. You don't get to bid and then pull out of several successful bids because you bought it from another seller. If you don't want ten of something, don't put bids out on ten. Bid on one at a time.

Very simple, you get negative ratings and sellers can refuse bids from you.
 
gaspi101 said:
Especially true given that sellers can always choose to disregard your bet
According to the Ebay user agreement, the seller is obligated to sell the item to the highest bidder.

5.2 Binding Bids. Except for items listed in a category under the Non-binding Bid Policy, if you receive at least one bid at or above your stated minimum price (or in the case of reserve auctions, at or above the reserve price), you are obligated as the seller to complete the transaction with the highest bidder upon the auction's completion, unless there is an exceptional circumstance, such as: (a) the buyer fails to meet the terms of your listing (such as payment method), or (b) you cannot authenticate the buyer's identity.

Similarly, if you are the highest bidder on the item, you're obligated to follow through with the transaction.

1. Bidding and Buying.
As a buyer, you are obligated to complete the transaction with the seller:
o if you purchase an item through one of our fixed price formats; or
o if you are the highest bidder at the end of an auction (meeting the applicable minimum bid or reserve requirements) and your bid is accepted by the seller, unless the item is listed in a category under the Non-Binding Bid Policy or the transaction is prohibited by law or by this Agreement.

By bidding on an item you agree to be bound by the conditions of sale included in the item's description so long as those conditions of sale are not in violation of this Agreement or unlawful. Unless you and the seller agree otherwise, you will become the item's lawful owner upon physical receipt of the item from the seller, in accordance with Ca. Com. Code § 2401(2) and Uniform Com. Code § 2-401(2). Bids are not retractable except in exceptional circumstances, such as: when the seller materially changes the item's description after you bid; a clear typographical error is made; you cannot authenticate the seller's identity; or when the seller does not confirm your purchase in the Half.com area of our services. If you choose to bid on mature audience items or items that are restricted to adult use, you are certifying that you have the legal right to purchase such items.


It's not clear whether you are proposing to retract your bid or just stiff the seller (assuming you're the highest bidder). Either way, Ebay has sanctions for both violations and you'll soon find yourself an ex-ebay member.
 
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gaspi101

Guest
I wasn't proposing anything. I was actually curious about the legal enforceablity of a "contract" such as those purported to exist in ebay bids. I fully understand the ability of eBay to enforce its own rules by sanctioning members. I wanted to know more about the status of the case law regarding the subject, and how it would fare against the Restatements, especially against doctrines such as detrimental reliance, etc. I don't want to stiff anyone. I'm just a law school student that was curious, and couldn't find answers in the library or on Westlaw, so I decided to ask experienced attorneys. Thanks anyway!

Cheers,
Gaspi
 

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