Posted By:
davidcyclebackI don't believe the 'winner' would be legally required to pay the $10 million. Judges generally work under the assumption that a "this for that" exchange contract should involve a reasonably or at least remotely fair exchange-- or at least an exchange! Does trading $10 million for $0 even qualify as an exchange? Many judges would say it is fine if someone wishes to pay $10 million for a worthless scrap of paper not worth 10 cents or if someone wants to give the money as a gift, but would not rule this auction contract as an enforceable "this for that" contract as they don't see an exchange taking place (a worthless scrap of paper essentially counting as nothing, at least in comparison to $10 million).
Similarly, if you have an exchange of goods or services contract with a total stranger that trades your house and car for a random grain of sand with no sentimental or other value, many judges will rule the contract not binding. The judges will say if you want to make the trade that is fine by them, but don't expect the contract to be held up in court. The trade is practically a gift, and the contract wasn't about a gift but an exchange.