Text of the provision
Art. 1476. In the case of a sale by auction:
(1) Where goods are put up for sale by auction in lots, each lot is the subject of a separate contract of sale.
(2) A sale by auction is perfected when the auctioneer announces its perfection by the fall of the hammer, or in other customary manner. Until such announcement is made, any bidder may retract his bid; and the auctioneer may withdraw the goods from the sale unless the auction has been announced to be without reserve.
(3) A right to bid may be reserved expressly by or on behalf of the seller, unless otherwise provided by law or by stipulation.
(4) Where notice has not been given that a sale by auction is subject to a right to bid on behalf of the seller, it shall not be lawful for the seller to bid himself or to employ or induce any person to bid at such sale on his behalf or for the auctioneer, to employ or induce any person to bid at such sale on behalf of the seller or knowingly to take any bid from the seller or any person employed by him. Any sale contravening this rule may be treated as fraudulent by the buyer.
(n)
Civil Code of the Philippines, Republic Act No. 386, approved June 18, 1949, effective August 30, 1950. Reproduced in full; verified verbatim against the LawPhil and ChanRobles official-text renderings.
What this article means
In an auction: each lot is a separate sale; the sale is perfected by the fall of the hammer (before which bids may be retracted and goods withdrawn unless "without reserve"); the seller may reserve a right to bid; and secret bidding by or for the seller (puffing) lets the buyer treat the sale as fraudulent.
Related provisions
- Article 1475 — Perfection of the Sale.
- Article 1477 — Ownership Passes on Delivery.
Cases interpreting this article
- Authorities on this article will be added here as each is verified against primary sources.