Auctions
Understanding auctions - principles and definitions
By Raphaël MORENON27 April 2025What is an auction? Legal definition An auction is an offer to buy an item at a specific price at a public sale. It represents a bid made by a bidder as part of a specific procedure. This offer to purchase is part of a formalised process in which the property is awarded to the highest bidder. Distinction from related concepts An auction is clearly distinct from a higher bid. The latter only occurs after an initial auction and is only permitted for certain sales. An overbid consists of proposing a higher price than that of the initial bid, leading to a new auction. Re-auctioning refers to the resale of a previously awarded item when the successful bidder has failed to meet his or her obligations, in particular payment of the price. This procedure replaces the former "folle enchère" (irresponsible bidding). The different auction systems The dominant system in France is the ascending auction. Potential buyers offer bids...
Auctions of boats, ships and aircraft: procedures and legal particularities
Guarantees, securities and enforcement law, AuctionsBuying a pleasure boat, merchant ship or aircraft by auction can be an excellent opportunity. However, these procedures, which come under the heading of sales by movable auction, are governed by complex legal rules that are often unfamiliar to the general public. Whether it is a forced sale after...Abandoned objects: auction procedures and rights of parties
Guarantees, securities and enforcement law, AuctionsWhat happens to suitcases left in a hotel for months? How can a garage owner dispose of a car that has never been recovered? The law lays down specific procedures for auctioning abandoned items, protecting the rights of both owners and custodians. 1 The legal framework...The legal framework for furniture auctions: what you need to know
Guarantees, securities and enforcement law, AuctionsThe public auction, with its characteristic ritual and the hammer that seals the deal, fascinates as much as it questions. The legal framework surrounding auctions has changed radically in recent years. Since 2011, the field has been liberalised, opening up new possibilities while maintaining the necessary framework. Recent developments...Auction sales of timber harvests and cuttings: legal framework and specific features
Guarantees, securities and enforcement law, AuctionsSelling crops or timber at auction involves a specific procedure. The repeal of the law of 5 June 1851 changed this legal framework. What rules apply today? Introduction: legal classification of harvests and cuttings of wood Public sales of harvests concern the products of...Auctions of new goods: legal framework and practices
Guarantees, securities and enforcement law, AuctionsAct 2011-850 of 20 July 2011 radically changed the rules governing auctions of new goods in France. Previously severely restricted, these sales are now authorised subject to conditions. This change marks the end of a centuries-old principle enshrined in the law of 25 June 1841, which prohibited the sale...Repeat auctions: mechanism and consequences
Guarantees, securities and enforcement law, Auctions1. Principle and definition of the reiteration of bids Terminological evolution: from "folle enchère" to reiteration The reiteration of bids replaced the term "folle enchère" when the seizure of property procedure was reformed by Order no. 2006-461 of 21 April 2006. In the past, this term referred to...Electronic auctions - procedures and particularities
Guarantees, securities and enforcement law, Auctions1. Legal framework for electronic auctions Legal definition Article L. 321-3, paragraph 1, of the French Commercial Code defines an electronic auction as "the act whereby an agent offers an item for remote public auction by electronic means in order to sell it to the highest bidder". This...Auctions: players and procedures
Guarantees, securities and enforcement law, AuctionsTo understand auctions in their entirety, it is essential to be familiar with their principles and definitions. More specifically, sales by auction are governed by a precise legal framework. The players and procedures vary depending on whether the sale is voluntary or legal. Here's what you need to know about...
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