A farmer’s tasks vary according to the type of operation. A farmer who raises only crops will be responsible for preparing land for planting, caring for the crops and harvesting. Some farmers sell their own crops at market, while others have contracts with processing companies or other organisations.
Farmers who raise livestock might also raise crops to feed their animals, in which case they may also need to store their crops to feed the animals during the winter months.
An auction sale is a public sale. The goods are sold to all members of the public at large who are assembled in one place for the auction. Such interested buyers are the bidders.
The price they are offering for the agro products is the bid. And the products will be sold to the bidder with the highest bid.
Goods Sold in Lots
In an auction sale, there can be many goods up for sale of many kinds. If some particular goods are put up for sale in a lot, then each such lot will be considered a separate subject of a separate contract of sale.
Farmer may Reserve Right to Bid
The farmer may reserve his right to bid. To do so he must expressly reserve such right to bid. In this case, the farmer on any person on his behalf can bid at the auction.
Sale Not Notified
If the farmer has not notified of his right to bid he may not do so under any circumstances. Then neither the farmer nor any person on his behalf can bid at the auction. If done then it will be unlawful.
An auction sale may be subject to a reserve price or an upset price. This means the auctioneer will not sell the products for any price below the said reserve price.
But if the farmer or any other person appointed by him employs pretend bidding to raise the price of the goods, the sale is voidable at the option of the buyer/dealer. That means the buyer/dealer can choose to honour the contract or he can choose to void it.
Prices are bid by buyers and asked (or offered) by sellers. Auctions may also differ by the procedure for bidding (or asking, as the case may be):
In an open auction dealer may repeatedly bid and are aware of each other’s previous bids.
In a closed auction buyers and/or farmer submit sealed bids