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Payne v. Cave
From wikilawschool.net. Wiki Law School does not provide legal advice. For educational purposes only.
Payne v. Cave, 3 TR 148 (1789).
Facts: At an auction for a worm tub, the defendant bid 40 pounds. He then asked the auctioneer if it was worth that price, to which he received a negative answer. Defendant retracted his bid. The tub was auctioned off the next day to the defendant for 30 pounds.
Procedural History: Plaintiff filed action to recover the difference.
Issue: Was there a contract formed when the defendant bid?
Holding: No.
Reasons: The contract is formed at the end of the auction, when the hammer strikes. Before that moment, neither party is bound; either can back out.
