Two machines were up for auction without reserve with Oake's auction house. The machines were each worth 28,000 and the auctioneer tried to get a bid of 10,000. Bethany bid 800 for the machines but the auctioneer refused to accept the bid.

Which of the following most likely follows from this? Choose the correct answer, and explain how you have arrived at your designated correct answer including why you have dismissed the other options.

(a) The auctioneer is in breach of contract and Bethany will be awarded damages, however these will be nominal only to compensate Bethany for the lost opportunity to buy the machines.

(b) The auctioneer has been negligent in failing to stipulate a reserve but the cause of action is open to the seller of the machines not Bethany as a would-be buyer.

(c) The auctioneer is not in breach of contract and Bethany will not be awarded damages because in the absence of a reserve the auctioneer has the right to choose the starting bid.

(d) The auctioneer is in breach of contract and Bethany will be awarded damages of 55,200, as the difference between what she had bid and the amount she would have had to pay to buy the machines elsewhere.