Legal Question in Business Law in California

Ebay Bid Retraction Contract Violation

Hi,

Last night I decideded that I would bid on a car on Ebay. Later today i decided that I wanted to retract my bid. Yes the reason was illigitimate but I asked the seller anyways. The second I asked him if i could retract my bid. He wrote this

Unfortunatelly,bid retractions or cancellations are not allow on the last 24 hours of the auction. Read our description

5. AN EBAY AUCTION IS A LEGALLY BINDING CONTRACT. WE ARE OFFERING OUR ITEMS AND THE BIDDER IS UNEQUIVOCALLY ACCEPTING THE MIRRORED TERMS OF OUR OFFER BY BIDDING. THIS IS A BILATERAL CONTRACT, THE CONSIDERATION IS A PROMISE TO BUY BY THE OFFEREE AND A FORBEARANCE TO SELL THE ITEM TO ANYONE BUT THE OFFEREE BY THE OFFEROR. ANYONE BREACHING THEIR CONTRACT WITH US (FOR ANY EXCUSE, AND WE'VE HEARD THEM ALL) WILL BE SUED FOR LIQUIDATED DAMAGES OF $1,000.00 OR 10% OF THE PURCHASE PRICE OF THE ITEM AND ALL ATTORNEY FEES, PRIVATE INVESTIGATION FEES, AIRLINE TICKETS, HOTEL ACCOMMODATIONS WILL ALL BE ATTACHED TO THE LAW SUIT. DO YOURSELF A FAVOR AND BE ABSOLUTELY CERTAIN OF YOUR ACTIONS BEFORE ENTERING INTO A CONTRACT WITH US.

Now my question is:

By canceling the auction does that not void the ''contract''? Will he have a case?


Asked on 7/02/03, 1:38 am

2 Answers from Attorneys
Edward Hoffman Law Offices of Edward A. Hoffman

Re: Ebay Bid Retraction Contract Violation

I don't see any indication in the seller's email that he is cancelling the contract.

He can only claim liquidated damages if you were notified of this remedy when you placed your bid. If it was on the bid page (or on another page to which you were directed by the bid page) then he may be on solid ground.

This only matters if you win the auction. If someone else outbids you then there is no harm done.

Or, of course, you can just honor your bid and buy the car if you win.

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Answered on 7/02/03, 2:12 am
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Ebay Bid Retraction Contract Violation

What do you mean by "By canceling the auction...."? I do not see anything in your question to suggest that anyone canceled the auction.

Are you equating your attempt to withdraw your bid with "canceling the auction?" Please understand that attempting to retract a bid does not bring about a cancelation of the auction.

It looks to me as though you bought a car or a lawsuit, unless you were, or will be, lucky enough to be outbid before the auction closed or closes.

Your best defense would be that the liquidated damages are unreasonably high. Certainly that would be the case if the value of the car is only a few thousand dollars. However, if its value is maybe $10,000 or more, the damages sought are more realistic and the seller might win.

It's also very possible that you can work out a settlement with the seller. Pursuing a lawsuit is risky, expensive and time-consuming, and most plaintiffs would rather settle than sue.

Also consider eBay grievance-resolution services.

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Answered on 7/02/03, 1:01 pm


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