In the executor's auction sale scenario, a neighbor bid on a tractor and withdrew his bid before the auctioneer announced completion of the sale. Must the auctioneer permit withdrawal?

• A. No, because the auctioneer may, but is not required to, accept the neighbor's withdrawal of his bid.
• B. No, because there is no right to withdraw a bid.
• C. Yes, because the auctioneer had not announced the completion of the sale.
• D. Yes, because the seller retained the right to withdraw any item.

Answer: (C)

The important idea is that a bid isn’t binding until the auction is completed. In an auction, the moment the auctioneer announces completion or declares the item sold is when the contract with the winning bidder is formed. Because the neighbor withdrew before that completion moment, no binding sale had occurred yet, so withdrawal is permitted and the auctioneer must allow it. If completion had already been announced or the item declared sold, withdrawal wouldn’t be possible because the sale would be final.