An adult son had inadvertently listed his father's Audi A4 on eBay without a minimum price. After noticing the error, he cancelled the auction and re-listed the car on eBay – this time specifying a minimum price. Unfortunately, by that point a highest bid of EUR 7.10 had already been placed, and the bidder now demanded that the car be handed over. Rightly so? No: in its judgment of 04 November 2013 (2 U 94/13), the OLG Hamm held that an eBay auction cancelled due to an error in the minimum price specification does not constitute a contract even where a bid exists, because the offer could be withdrawn under the eBay terms. Lucky for the father… or rather for the son?!?
Frequently asked questions
Frequently asked questions
Is a purchase contract concluded if an eBay auction is cancelled despite an existing bid?
No. According to the ruling of the OLG Hamm dated 04.11.2013 (Az. 2 U 94/13), no purchase contract is concluded if the seller legitimately cancels the auction due to an error in stating the minimum price. Under the eBay terms, the offer may be withdrawn in such cases, so that even an existing highest bid becomes void.
When may a seller cancel an ongoing eBay auction?
Under eBay's terms, a cancellation is permitted if there is a legitimate reason, for example an input error when entering the minimum price. In such cases, the listing may be withdrawn without the highest bidder being entitled to transfer of the goods.
Does the highest bidder have a claim for delivery in the case of an incorrectly listed eBay auction?
No. If the auction is validly cancelled due to an error such as a missing minimum price, there is no claim for delivery or transfer of title. This applies even if a bid – often very low – has already been placed, because no contract has been concluded and therefore no obligation to perform arises.
What is the significance of the OLG Hamm ruling of 4 November 2013 for eBay sellers?
The ruling (Az. 2 U 94/13) protects sellers from the consequences of inadvertently flawed auction listings, for example when the minimum price was forgotten. Sellers may withdraw the offer without being liable for damages or delivery to a bargain hunter, provided there is a valid cancellation reason under the eBay terms and conditions.