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Jesse James - $1 reserve


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Back again... https://www.trademe.co.nz/motors/boats-marine/yachts/keeler/auction-1961257225.htm

 

Flipped or original sale failed?? What's the goss?

The owner passed away during the auction last time and they weren’t happy with what was offered so they pull it, not sure if that was legal but also not worth the cost of fighting it.

Hope they get offered half as much this time

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I see it’s fix price now

Funny boat as it’s a race boat that’s fitted out as cruiser

Expensive to run and not heaps of cruising room

Kind of the worst of both imho

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Not legal at all. Binding contract applied

Did the owner really die during the auction? If so the auction would be void wouldn't it? Auctions only form a contract at the fall of the hammer, and at that point one of the parties could no longer form a legal contract. Sorry, piqued my rusty legal curiosity.

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Did the owner really die during the auction? If so the auction would be void wouldn't it? Auctions only form a contract at the fall of the hammer, and at that point one of the parties could no longer form a legal contract. Sorry, piqued my rusty legal curiosity.

That was their story

Others said same as Puff

It became was it worth the legal costs to in force

He did offer a little extra to try to make it happen but he was told they had a buyer that would pay X and if he matched that he could have it. Obviously that was a load of crap.

I’d say he’s probably over it by now.

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Trademe rules

 

 If a bid is accepted by a seller, a contract of sale will be formed between the buyer and the seller directly

 

For auctions, you must sell to the highest bidder if the reserve price is met. You must only sell to a bidder who is not the highest bidder after reasonable attempts have been made to contact the winning bidder without success.

 

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I have a funny feeling, if the sale is now being managed by the owners estate (i.e. family) that a lack of understanding of the current boat market may be a problem.

 

The holding costs for a boat that size aren't insignificant. Not to mention ongoing maintenance (if they do any). Not to mention broker fees, which wont be insignificant. To get a quick sale in this market will require a low price.

 

They had a sale in the bag.

Puff has experience here with Sundreamer don't you? Turned down a low price when first listed, waited a year with ongoing holding costs, then sold it for less? (apologies if I have the wrong example).

 

Shall we start a sweep-stakes of how long Jesse James will be on the market now?

 

PS, history of purchasers being dicked around wont help move it either...

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Trademe rules

You can't form a legal contract with someone who is deceased though. Unless the trademe terms have something buried in there that provides for the estate to fulfill the contract in the event of death it is void - even in that case it would be legally dubious. It would have to be determined through the will or probate who had title to transfer to the buyer and whether they were bound by the sale. Total minefield. They probably had no choice but to cancel the sale and get the formalities of the estate done and then put it on sale again.

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The owner passed away during the auction last time and they weren’t happy with what was offered so they pull it, not sure if that was legal but also not worth the cost of fighting it.

Hope they get offered half as much this time

could the sale of gone ahead ?would there not be a probate period where all assets are put on hold ?

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That was their story

Others said same as Puff

It became was it worth the legal costs to in force

He did offer a little extra to try to make it happen but he was told they had a buyer that would pay X and if he matched that he could have it. Obviously that was a load of crap.

I’d say he’s probably over it by now.

That's a hell of a story to get out of a sale. I'm really just commenting assuming that is the true situation.

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You can't form a legal contract with someone who is deceased though. Unless the trademe terms have something buried in there that provides for the estate to fulfill the contract in the event of death it is void - even in that case it would be legally dubious. It would have to be determined through the will or probate who had title to transfer to the buyer and whether they were bound by the sale. Total minefield. They probably had no choice but to cancel the sale and get the formalities of the estate done and then put it on sale again.

Yes you can. The vendor listed the boat for sale at $1 reserve. The reserve was met within minutes so there was an obligation to sell prior to him dying. That obligation passes onto his estate just like any other commitment that a person has in life and thereafter. Your mortgages don't disappear when you die just because you signed them when you were alive. I've acted as an executor many times and contracts entered into by the deceased have to be honoured.

 

But probably too hard and will cost more in legal fees than the boats worth. In 2 cases I've had recently with families they chewed through a million dollars fighting over a few hundred thousand.

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Yes you can. The vendor listed the boat for sale at $1 reserve. The reserve was met within minutes so there was an obligation to sell prior to him dying. That obligation passes onto his estate just like any other commitment that a person has in life and thereafter. Your mortgages don't disappear when you die just because you signed them when you were alive. I've acted as an executor many times and contracts entered into by the deceased have to be honoured.

 

But probably too hard and will cost more in legal fees than the boats worth. In 2 cases I've had recently with families they chewed through a million dollars fighting over a few hundred thousand.

Certainly not worth the legal expenses.

 

I agree in certain circumstances a contract will fall to the estate. Mortgages and real estate are a bit specific as there transfer has specific law and clauses relating to death.

 

In this instance, the contract has not been formed until the auction ends, therefore if the the seller dies the before the end, no contract can be formed as there is only one party existing (the buyer).

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A contract was made once the reserve price was met, with the proviso it could be broken if a higher bid was made within a certain time frame.

 

Any. Bid above reserve should be binding

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A contract was made once the reserve price was met, with the proviso it could be broken if a higher bid was made within a certain time frame.

 

Any. Bid above reserve should be binding

 

That's not the law of contract though, a contract is only complete at the end of the auction.  A trademe auction doesn't overrule case law, you can't make a contract with someone who lacks capacity to be a contracting party, for instance a minor, someone mentally disabled or someone who is dead.

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