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LSDefine

Simple English definitions for legal terms

white bonnet

Read a random definition: Muniment of Title

A quick definition of white bonnet:

White Bonnet: In Scots law, a white bonnet is a made-up person who pretends to be a bidder at an auction to drive up the price of an item. This is also known as a shill.

A more thorough explanation:

Definition: In Scots law, a white bonnet refers to a fictitious bidder at an auction who is employed by the seller to drive up the price of the item being sold. This person is also known as a shill.

  • During the auction, the auctioneer noticed that the bids were not going as high as he had hoped. He then called upon the white bonnet to place a bid, which caused other bidders to increase their offers.
  • It is illegal to use a white bonnet in an auction as it is considered a form of fraud.

These examples illustrate how a white bonnet is used to manipulate the bidding process at an auction. By pretending to be a genuine bidder, the white bonnet can create the illusion of competition and drive up the price of the item being sold. This can result in the seller receiving a higher price for their item, but it is considered unethical and illegal.

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