What legal recourse is there for a seller who backs out of a completed auction?
October 19, 2012 10:47 AM Subscribe
What legal recourse is there for a seller who backs out of a completed auction on Flippa.com?
posted by anonymous to Law & Government (4 answers total) 2 users marked this as a favorite
If someone sells a website (or domain, or anything else) on Flippa.com and then after the auction is over, backs out before any money ever exchanges hands or any documents are signed...what real legal recourse is there from the winning buyer?
Flippa's Terms: https://flippa.com/termsandconditions#c-5
"When a Seller agrees to sell a Website to a Buyer (whether by way of Auction or Private Sale) and the Buyer agrees to purchase that Website, then that agreement for the sale of the Website ("Sale Agreement") will be legally binding on both the Seller and the Buyer."
The Terms make reference to the agreement being "legally binding" between the Seller and Buyer, but given Flippa is an Australia company, do they have any real say outside of that jurisdiction?
Could the buyer actually force a sell? Again, on the assumption no money ever exchanged hands and no documents were ever signed.