How does an auction contract establish a relationship?

An auction contract establishes a relationship as a special agency like a power of attorney because it involves the auctioneer acting on behalf of the seller in a specific transaction. In this context, the auctioneer is granted the authority to represent the seller's interests during the auction process, which includes the power to negotiate and finalize the sale of items. This relationship is different from a general agency, as the auctioneer's authority is limited to the specific auction and does not extend beyond it.

By having this special agency relationship, the auctioneer is bound to act in the best interests of the seller, following their instructions and terms as laid out in the contract. This creates a trustworthy dynamic as sellers rely on the auctioneer's expertise and ability to attract potential buyers while ensuring compliance with legal and ethical standards in the auction process.