Auctioneers have been announcing and/or publishing their “terms and conditions” for their auctions for centuries. We look closer today to what is a “term” and what is a “condition” in these terms and conditions.
Generally speaking, conditions are typically unilateral — for example, “You must be registered to bid” so if the bidder wants to bid, registration is required. Then, terms are bilateral and binding to both parties — for instance, all items sold “AS IS and WHERE IS.”
Indeed most people hold that the word “term” and the word “condition” are largely the same concept, and somewhat indistinguishable. Most auctioneers, sellers, bidders, and buyers would probably agree. It’s not terribly important from a practical standpoint to distinguish the two.
That is … except in court. A recent case centered on whether the auctioneer was prescribing a “term” or a “condition.” Ultimately, we helped the judge understand and the case was settled in the auctioneer’s favor.
It may be a good idea to continue to characterize terms and conditions as both, understanding that legally there is a difference between the former and the latter; you as an auctioneer likely have terms and conditions.
Mike Brandly, Auctioneer, CAI, CAS, AARE has been an auctioneer and certified appraiser for over 30 years. His company’s auctions are located at Mike Brandly, Auctioneer, Brandly Real Estate & Auction, and formerly at Goodwill Columbus Car Auction. He serves as Distinguished Faculty at Hondros College, Executive Director of The Ohio Auction School, and an Instructor at the National Auctioneers Association’s Designation Academy and Western College of Auctioneering. He has served as faculty at the Certified Auctioneers Institute held at Indiana University and is approved by The Supreme Court of Ohio for attorney education.
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