Upset price meaning

In legal practice, upset price describes the minimum acceptable bid set for property to be sold at auction, below which the lot will not be knocked down. It functions as (and is often used interchangeably with) the reserve price. The term is descriptive rather than generally defined in statute. In Scotland it is well established in court and auction practice and appears in case law in the context of judicial sales (public roup) and sales conducted by court appointees or enforcement officers. In England and Wales, Northern Ireland and Ireland, reserve price is the prevalent term in auction conditions, though upset price may appear in older authorities or in some insolvency and enforcement contexts. Key features and use: - Fixed in advance by the seller or office‑holder (for example, a mortgagee in possession, receiver, liquidator, trustee in bankruptcy/sequestration or sheriff/enforcement officer), or set/approved by the court. - Commonly kept confidential from bidders; occasionally disclosed in court‑ordered sales. - Protects against sales at an undervalue and supports duties to achieve the best price reasonably obtainable. - If bidding does not reach the upset/reserve, the property is usually withdrawn or a sale proceeds only subject to approval. - Distinct from a guide price, which is merely indicative.