Farmers & Merchants State Bank Tracy V‪.‬

Auctioneer -- rule as to liability of auctioneer. 1. The rule with regard to the liability of auctioneers is based on that of agency. If the auctioneer acts for a disclosed principal, the rules of that relationship apply, and unless he does or says something to make himself responsible to the buyer, he is not liable as a principal; but if he sells for an undisclosed principal, he becomes liable for a defect in the title to the property sold or for any misrepresentation as to its condition.