Auction Sale (Sections 64-68) is public sale where goods sold to highest bidder. Essentials: (1) Goods displayed; (2) Bids invited from public; (3) Auctioneer acts as seller's agent; (4) Sale to highest bidder. Auctioneer's role: Acts as agent for seller; hammer fall concludes contract. Reserve price: Minimum price; auctioneer can refuse bids below reserve. Bid acceptance: Auctioneer can accept/reject bids; highest bid accepted when hammer falls. Bidder's obligations: Pay within specified time; failure to pay, auctioneer can resell at bidder's cost. Seller's warranty: Usually minimal in auction; goods sold as-is unless conditions specify. Case law: Thornett v. Beers establishes hammer fall as acceptance moment. For accountants, auction proceeds recognition requires identifying when hammer falls (control transfer). Auction documentation crucial for revenue recognition timing. Exam tip: Identify auction essentials; determine when contract formed (hammer fall); assess reserve price effect on liability.