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Rescission by Vendor

Even though rescissions continue to exist in sales cases as a non-code remedy, the Uniform Commercial Code makes no mention of rescissions.   If proper grounds exist, either the vendor or the vendee may rescind a contract of sale entered into at an auction[i].  Thus, the seller may elect to rescind the sale, where bidding has been stifled, or where the purchaser fails or refuses to comply with the terms and conditions of his/her purchase[ii]. The auctioneer possesses no authority to rescind a sale and his/her agency is limited to selling the property.  Therefore, the election must be made by the vendor personally[iii].  Furthermore, a right to a rescission may be expressly provided as an equivalent to a reservation of the right to reject bids[iv]. 

[i] Chambers v. Kennington, 796 So. 2d 733 (La.App. 2 Cir. Sept. 28, 2001)

[ii] Higgins v. Delaware, L. & W. R. Co., 60 N.Y. 553 (N.Y. 1875)

[iii] Boinest v. Leignez, 31 S.C.L. 464, 2 Rich. 464, 1846 WL 2230 (Ct. App. Law 1846).

[iv] Gilbert v. United States, 60 Ct. Cl. 1005 (Ct. Cl. 1925)

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