Won an on-line auction seller took payment and now they want to cancel the auction and refund money

Question

I was bidding on a PropertyRoom.com auction and won the item I was bidding on. After winning another bidder compaline3d about my log-in name "Sorry Auction Closed". Propertyroom suspended my login and sent an email notifying me that I was in violation of the user agreement. However they said, via email, they would honor the auction since I was the high bidder. They processed a payment for the total auction amount of 508.80 and that amount was charged to my credit card. When they notified me of the charge I sent an email telling them I accept and I would pick up the item on a specific day. Now 6 days later, user agreement allows for 10 days to pick-up, they notify through email they have changed their minds and will not honor their original auction award. They have made an attempt to refund the original charge. What gives? Do I have a case against them for breach of contract? There was an offer, both parties accepted the offer and consideration was tendered. Any legal minds out there have any advice. I understand their issue but their resolution really put the cart before the horse. The item I purchased has substantial value to me and I would like to fight them.

Answer 1

The question of whether or not you have a case would hinge on whether or not the auction had a reserve price listed and whether or not the reserve price was met.  If there was no reserve or the price was met, then you have a solid breach of contract case.  As you said, you have a written agreement (required in most states for goods +$500), consideration (your money) was accepted.    Keep in mind that this will almost assuredly be a small claims issue and it might get quite complicated if the buyer lives in another state.