Formation of a Contract - Offer (4)
4A.Auction:Another circumstance where ITT's have been recognised are in the case of "Payne v Cave", where it was held that items in auction are an ITT; each bid is an offer and acceptance only occurs when the gavel falls.
AO2: There is an element which protects the seller as items can be removed from a sale before the gavel falls. Furthermore, the buyer is also protected in this circumstance as they have the ability to revoke their offer before acceptance takes place.
4B. Adverts for Auctions: In the case of "Adverts for Auctions", these have been held to be an ITT, as in "Harris v Nickerson", an advert was placed for an auction and Nickerson travelled for the auction when the auction wasn't on, however his claim wasn't successful.
AO2: This again protects the seller by not being bound to sell everything advertised.
4C. Auctions without reserves:In "Warlow v Harrison", it was held that auctions without reserves without reserve each good must be sold to the highest bidder.