Auc'tion, the public sale of an article to the party offering the highest price, or to the bidder who first accepts the terms offered by the vender where he sells by reducing his terms until some one accepts them. The latter form is known as a Dutch auction. A sale by auction must be conducted in the most open and public manner possible; and there must be no collusion on the part of the buyers. Puffing or mock bidding to raise the price by apparent competition is illegal. A bid is an offer and when accepted forms a binding contract (See CONTRACT).