Payne v. Cave Payne v. Cave (a bid may be retracted before the hammer falls)
(1789) 3 Term Rep 148; 100 ER 502 · Court of King's Bench (England) · 1789
PrincipleA bid is an offer revocable until the fall of the hammer; the auctioneer's announcement of completion is the acceptance.
Facts
At an auction of a worm-tub and a pewter worm, Cave made the highest bid. Before the auctioneer knocked the lot down to him he withdrew the bid. The auctioneer nonetheless treated the lot as sold to him, and Payne sued for the price.
Held
The Court of King's Bench held that the auctioneer's putting up of the lot is an invitation to treat and each bid is an offer; the contract is complete only when the auctioneer signifies assent by knocking down the hammer. Until then the bidder may retract. Cave's withdrawal before the fall of the hammer was therefore effective and no contract arose.
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