cartage, transportation insurance premium and export appraisal
fee (if any).
Article 18 Currency
All payments shall be made in the currency designated by the
Company. In the event that the Buyer makes payments in currency other than the designated one, the currency shall be converted at the rate agreed upon by the Buyer and the Company or
at the rate announced by People’s Bank of China one working
day prior to the payment. The Buyer shall reimburse the Company for any bank charges, commission and other expenses for
converting the currency into RMB.
Article 19 Transfer of Risks
After a successful bid, any Lot purchased shall be entirely at the
Buyer’s risk as early as one of the following conditions is met:
(1) the Buyer collects the Lot purchased; or
(2) the Buyer pays to the Company full Purchase Price for the
Lot; or
(3) expiry of seven days after Sale Date.
Article 20 Collection
The Buyer shall collect the purchased Lot at the Company’s
domicile or other place appointed by the Company no later than
seven days after Sale Date. In case of failure to do so, the Buyer
shall be solely responsible for all risks and losses of the Lot and
bear all expenses for storage, cart and insurance in connection
therewith due to delay. Nevertheless the Lot is still preserved by
the Company or any other agents, the Company and its employees or its agents shall not be liable for any losses and damages
of the Lot caused by any reason.
Article 21 Package and Transportation
The Company may arrange packing and handling of the purchased Lot on behalf of the Buyer as the case may be on its
request and the Buyer shall be liable for any loss arising from
such arrangements. In no circumstances shall the Company take
any liability for any damages or losses of glass, frames, drawer, bottom mat, trestle, mounting, insert pages, roller or other
similar accessories arising out of any reason. In addition, the
Company shall undertake no liability for any fault, omissions,
damages or losses caused by the packers or carriers recommended by the Company.
Article 22 Remedies for Non-payment
In the case that the Buyer fails to make full payment within the
period provided in Article 17 herein, the Company shall be entitled to exercise one or more of the following remedies:
(1) If following a successful bid the Buyer fails to make payment within the stipulated period under the Conditions, the
Buyer will lose the right to request the Company to refund the
guarantee money (the deposit)and the Company shall keep the
guarantee money (the deposit). Besides which, the Buyer shall
also undertake any liability may occur in accordance with the
Conditions; In the event that the Buyer fails to pay any one Purchase Price of the Lot on time according to the Conditions after
successful bidding on several Lots with the same one paddle
affixed with number, all of guarantee money (the deposit)shall
not be refunded and the Buyer shall undertaker relevant responsibilities in accordance with the Conditions;
(2) charge the Buyer an interest at a rate of 5‰ per day on the
due and unpaid amount until such payment is made fully, to the
extent it remains fully unpaid within seven days after Sale Date;
(3) commence lawsuit proceedings against the Buyer for any
damages caused by the Buyer’s breach of contract, including
but not limited to the losses of interest on deferred or unpaid
payment by the Buyer. The company has the right of refusing to
return the deposit for bid and charging for the fine;
(4) exercise a lien on the purchased Lot or other properties of
the Buyer which may be in the Company’s possession for any
reason. The Buyer is responsible for all expenses or risks that
occur during the period of lien. In case the Buyer fails to perform all relevant obligations herein within the period the Company designates, the Company shall have the right to dispose of
such property in accordance with relevant laws and regulations.
In the case the proceeds cannot cover the amount outstanding,
the Company is entitled to claim the balance;
(5) carry out a re-sale of the Lot by public auction or other ways
according to the Conditions subject to the consent of the Seller.
The original Buyer shall be liable to the Seller for the remuneration/commission and other Expenses occurred at such auction
as well as all Expenses for re-sale by public auctions or other
ways. In addition, the original Buyer shall also be liable for the
difference, if the Purchase Price actually received by the Seller
for re-sale by public auctions or other ways of such Lot is lower
than the original Purchase Price that would have been receivable
therein had the Buyer made the full payments;
(6) have the lien on any property of the buyer which has been
possessed by the company for any reason until such payment is
made fully.
Article 23 Remedies for Deferred Collection
In case the Buyer fails to collect the purchased Lot within the
period provided in Article 47 herein, the Company shall be entitled to exercise one or more of the following remedies:
(1) arrange storage of the Lot at the Company or any other
places at Buyer’s risk and expense(including but not limited to
the Storage Fee according to the standard set forth in Article 2
(15) of the Conditions from eighth day after the Sale Date). The
Buyer shall not collect the Lot unless the full Purchase Price is
paid;
(2) the Seller shall take liability for any risk and/or loss that
occurs after the period mentioned above in the case of failed
retrieval of the Lot within the designated period. In the event
that the Seller shall take back the Lot within ninety days after
Sale Date in accordance with the Conditions, the Company has
right to public auction or sell the Lot by a proper way and conditions. The amount, which is arising from forgoing disposal by
the Company after deducting all loss, expense incurred, shall be
collected by the Seller with no interests.
Chapter III Conditions Concerning the Seller
Article 24 Consignment Procedures
When arranging for consignment, the seller should sign a
consignment contract with the company. If the seller consigns
an agent for auction, the consignment documents and the valid
identity certifications of the seller and agent should be referred
to the company. Furthermore, the agent should sign a consignment contract with the company.
When the Seller consigns the Company for auction, the Company shall be automatically authorized to exhibit, display, make
pictures, illustrations, catalogue, or other video images or publicity materials of the Lot.
Article 25 The Seller’s Warranties
The Seller hereby makes irrevocable warranties to the Company
and the Buyer with respect to the consigned Lot as follows:
(1) the Seller has complete ownership and legal right to dispose
of the Lot. Without prejudice to any legal interest of any third
party, the auction of the Lot shall not violate any relevant laws
and regulations;
(2) the Seller has, to the best of its knowledge, made full and
complete disclosure and description to the Company with respect to the origin and any flaw or defect of the Lot without any
concealment and fabrication; and
(3) the Seller shall indemnify and hold the Company and/or
the Buyer from and against any claims, losses and damages or
actions incurred or brought by the actual owner or any third
party who claims to be the actual owner of the Lot as well as all
expenses and costs incurred in connection therewith, arising out
of, or in any way attributable to any breach of the above warranties (including but not limited to the promotion fee, auction fee,
lawsuit fee, attorney fee and other relevant losses.)
Article 26 Reserve
All Lots are offered subject to a Reserve, unless otherwise
marked or explained by the Company. The Reserve shall be determined by the Seller and the Company in writing and no modification or amendment of the Reserve shall be binding upon the
parties unless subject to prior written consent of the other party.
In no circumstances, shall the Company accept any liability for
failure in sale due to bidding lower than the Reserve at the auction.
Article 27 The Company’s Discretion
The Company may decide the followings at the Company’s absolute discretion:
(1) the arrangement of the order, location, and page size of
illustration of the Lot in the Catalogue and relevant expenses incurred therefore; specific means of exhibition/display of the Lot
and all relevant arrangement and expenses incurred therefore;
(2) the Company shall at its own discretion decide on whether
the Lot is appropriate to be auctioned by the Company (i.e.
whether to be auctioned finally), as well as the place of auction,
the scene of auction, the date of auction, the conditions of auction and the manner of auction.
Article 28 Disposal to Unauctionable Lot
After the Seller has signed the consignment auction contract
with and delivered the Lot to the Company, if for any reason the
Company believes that the Lot is not suitable for auction, the
Seller must collect the Lot within thirty days from the date of
the Company’s notice being dispatched (fees for the packaging
charge and cartage shall be paid by the Seller), the consignment
auction contract between the Seller and the Company will cease
on the date the Seller collects the Lot. If during the abovementioned period the Seller fails to collect the Lot, the consignment
auction contract will automatically cease. If within seven days
after the ceasing of the consignment auction contract, the Seller does not collect the Lot, the Seller shall pay the Company
Storage Fee according to the standard set forth in Article 2 (15)
of the Conditions from eighth day after the ceasing of the consignment auction contract. If the Seller does not collect the Lot
within sixty days after the ceasing of the consignment auction
contract, the company has right to publicly auction the lot or
sell it in other ways on the condition which the company deems
appropriate. The commission and the other fee undertaken by
the seller should be deducted from the sale proceeds and the
remainder, where existing, will be taken back by the seller without interest.
Article 29 Suspension of Auction
The Company may suspend any auction at any time under any
one of the following situations:
(1) the Company has the objection to the ownership and authenticity of the Lot;
(2) any third party has the objection to the ownership and
authenticity of the Lot with undertakings to provide relevant
evidence accepted by the Company, make security in writing
pursuant to the Company’s provisions and take all legal responsibilities for all legal repercussions and losses due to suspension
of auction;
(3) the Company has the objection to the explanation of the
Seller or the accuracy regarding the Seller’s warranty provided
in Article 8;
(4) the Company has any evidence to prove the Seller has already violated or is to violate any term of the Conditions; and
(5) any other reasonable causes.
Article 30 Withdrawal of Lots by the Seller
The Seller may withdraw the Lot at any time prior to the Auction Date subject to a written notice stating the reasons. In the
case that the catalogue or any other public materials of the Lot
have begun printing upon the Seller’swithdrawal, the Seller shall
pay an amount equal to 20% of the insurance amount of the Lot
and other Expenses in connection therewith. In the case that
the catalogue or other public materials has not been printed,
the Seller shall pay an amount equal to 10% of the insurance
amount and other related Expenses.
In case of withdrawal of the Lot, the Seller shall take the Lot
back within thirty days after receiving the notice sent by the
Company. If the Seller does not collect the Lot within the foregoing time limit, the Seller shall pay the Company Storage Fee
according to the standard set forth in Article 2 (15) of the Conditions from eighth day after the ceasing of the contract. If the
Seller does not collect the Lot within sixty days after the ceasing
of the consignment auction contract, the company has right to
publicly auction the lot or sell it in other ways on the condition
which the company deems appropriate. The commission and the
Chapter I General Provisions
Article 1 Governing Law
This Conditions of Business (hereinafter referred to as the
“Conditions”)are made in accordance with the Auction Law of
the People’s Republic of China, other relevant laws implemented in the People Republic of China, regulations of the People’s
Republic of China and the Articles of Association of the
Company with reference to international general practices. The
Seller and the Bidder should carefully read all the provisions of
this business conditions and be responsible for their behaviors.
Company has the complete right of interpreting and disposing
any special issues and matters which not stipulated in this conditions.
Article 2 Definitions and Interpretation
The terms used in the Conditions shall have the following
meanings:
(1) “We/Us/Our/Company”means Sungari International Auctions Co., Ltd.
(2) “the Company’s domicile”means Apt. 102, Building 1-12,
No. 2 Jiuxianqiao Rd., Chaoyang District, Beijing, and any
other registered address which may be changed subsequently.
(3) “the Seller”means a natural person, legal person or any
other organization who consigns the Lot to the Company for
auction in accordance with the Conditions. Under the Conditions, the Seller shall include any of its agents unless otherwise
provided hereunder or in a particular context.
(4) “the Bidder”means a natural person, legal person or any
other organization that has full capacity of civil rights to bid at
auction according to provisions of the laws of People’s Republic of China and who has gone through the necessary registration and procedural formalities of the Company. The Bidder
shall satisfy all provisions with respect to conditions of sale or
qualification of the Bidder. Under the Conditions, the Bidder
shall include any of its agents unless otherwise provided hereunder or in a particular context.
(5) “the Buyer”means the person with the highest bid accepted
by the auctioneer.
(6) “Lot”means any item(s)owned by the Seller or disposable
according to the laws, and consigned to the Company for auction.
(7) “Auction Date”means the published date on which the auction will formally begin. In case of any discrepancy between
the actual date of auction and the published date, the actual
date of auction shall prevail.
(8) “Sale Date”means the date on which the auctioneer confirms the sale of any Lot in the auction by dropping his hammer
or in any other public manner.
(9) “Hammer Price”means the acceptance of the highest bid
offered by the Bidder and this acceptance will be made by the
auctioneer in the manner of dropping the hammer or in any
other way.
(10) “Proceeds of Sale”means the net amount owed to the
Seller from the Hammer Prices after deducting commission
pro rata, taxes and all expenses and other amounts owed to the
Company by the Seller.
(11) “Purchase Price”means the total amount payable by Buyer
for his/her/its bid, including Hammer Price, commission and
other expenses payable by the Buyer.
(12) “Expenses”means charges and expenses including but
not limited to expenses with respect to insurance, making
catalogue and other public materials, packaging, transportation
and storage, and any other expenses pursuant to relevant laws,
regulations and provisions hereof.
(13) “Reserve”means the lowest selling price of Lot raised by
the Seller and confirmed with the Company in the consignment
auction contract.
(14) “Reference Price”means the price of the Lot provided
in the catalogue or other descriptive materials and estimated
prior to the auction. The Reference Price is subject to possible
changes and cannot be deemed as the fixed sale price, and no
legal binding force.
(15) “Storage Fee”means the fee payable by the Buyer or the
Seller under the Conditions relating to storage of the Lot, and
CONDITIONS OF BUSINESS
the current standard of Storage Fee is equal to 0.3‰ of Reserve
(if no Reserve, the agreed insurance amount shall be applied)
per day.
Article 3 Special Notice
When the auctioneer confirms the highest bid by dropping his
hammer or in any other public manner, the Bidder with the
highest bid shall be the Buyer of the Lot.
The Seller, the Bidder, the Buyer and other concerned parties
participating in the auction should read the Conditions carefully and conform to the provisions hereof. All parties shall be
liable for their own actions at auction and any loss caused by
failure to read the Conditions carefully.
Article 4 Exclusion of Liability
The Company especially declares that the Company cannot
guarantee the genuineness or fakery or the quality of the Lot,
and the Company shall not bear the liability for guaranteeing
the drawbacks.
The Bidder and/or his/her/its agent shall bear the responsibility
of carrying out his/her/its own inspection and investigations as
to the nature of the Lot and shall be liable for his/her/its bid.
Chapter II
Conditions Concerning the Bidder and the Buyer
Article 5 Catalogue of Lot
At the auction, the Company will prepare a catalogue to introduce the status of the Lot with words and/or pictures for
the convenience of Bidders and Sellers. The words, Reference
Price, pictures in the catalogue and other images and public
materials are only references for Bidders and are subject to revision before auction. The Company provides no guarantee for
the authenticity, value, tone, quality or for any flaw or defect
of any Lot.In case that the tone, color, graduation and shape
shown in catalogue and/or any other illustrations, images and
public materials differs from those of the original Lot due to
print, photograph and other technical reasons, the original shall
take precedence.
Any statement and appraisal in any way (including but not
limited to the certificate, catalogue, status explanation, slide
show and news media)of any Lot made by the Company and its
employees or its agents are only for reference and should not
relied on as any guarantee for the Lot. The Company and its
employees or agents shall undertake no liability for any inaccuracy or omission in the statements and appraisals mentioned
above.
Article 6 Inspection by Bidders
The Company especially declares that the Company cannot
guarantee the genuineness or fakery or the quality of the Lot,
and the Company shall not bear the liability for guaranteeing
the drawbacks. The Bidder and/or his/her/its agents shall inspect and investigate the actual status of the Lot and take liability for his/her/its bidding.
The Company strongly advises the Bidders to personally inspect the original Lot on which they intend to bid before the
Auction Date by identification or other methods. Bidders shall
judge the genuineness or fakery or the quality of the Lot by
themselves rather than relying on the Company’s catalogue,
status explanation and other images and public materials of the
Lot.
Article 7 Paddle Affixed With Number
The paddle affixed with number is the only evidence of the
Bidder’s participation in bid. Each Bidder shall take good care
of his or her paddle affixed with number and may not lend it to
any third person. In case of losing such paddle, the Bidder shall
go through the procedure for report of losing in the form of
writing agreed by the Company.
The person holding the paddle is deemed to be the registered
owner of the paddle, whatever he/or she is entrusted by the Bidder or not. The Bidder shall be liable for using his or her paddle
bid in the auction process, unless the Bidder goes through the
procedure for report of losing in the form of writing agreed by
the Company and such paddle affixed number has been cancelled by the auctioneer’s announcement in the auction process.
Article 8 Guarantee Money
The Company will charge a guarantee money before the Bidder
receives paddle affixed with number. The amount of guarantee
money will be announced before Auction Date. The Company
will refund all the guarantee money mentioned above with no
interest to the Bidder within five working days after auction in
case that the Bidder fails in auction. In the event that the Bidder
becomes to be the Buyer, the guarantee money will automatically turn to be deposit as part of the Purchase Price payable by
the Buyer.
Article 9 Bidding as Principal
Any person who bids shall be deemed as principal, unless the
Bidder represents to the Company a written certificate showing
that it is the agent of a principal and is also subject to the Company’s approval in written form before Auction Date.
Article 10 Authorized Bids
The Bidder shall attend the auction personally; otherwise it
may give the Company an authorization in writing to bid on
his/her/its behalf. The Company shall have the right to but no
obligation to accept such authorization.
The Bidder who intends to give the Company an authorization
to bid on his/her/its behalf shall present the Company with a
written authorization letter and hand in guarantee money in accordance with the provisions in Article 36 herein within certain
period (not later than three days before Auction Date).
The Bidder who entrusts the Company to bid on his/her/its
behalf shall inform the Company of bid cancellation in writing
not later than three days before Auction Date.
Article 11 Non-liability of Authorized Bids
Since authorized bid shall be the free service on transferring
the bid message on behalf of the Bidder provided by the Company to the Bidder, the Company and its employees shall not
be liable for any failure in bidding or any negligence or fault in
the authorized bids. Bidders shall attend the auction in person
to assure the success of bidding.
Article 12 Principle of Priority
In the event that two or more Bidders entrust the Company to
bid on their behalf for the same Lot with the same authorized
price, and finally succeed by dropping the hammer at such
price, the Bidder whose authorization certificate was first delivered to the Company shall be the Buyer of the Lot.
Article 13 Screen of Video Images
At some auctions, there will be a video screen or other screens
in operation for the convenience of Bidders, which is only for
reference. However, there may be errors in amounts, numbers
or pictures of the Lot, or in foreign exchange rate on the screen.
The Company shall not be liable for any losses and damages
caused by such errors.
Article 14 Auctioneer’s Discretion
The auctioneer is entitled to represent the Company and to increase or decrease the bidding ladder, or restart auction in case
of any dispute arising.
Article 15 Successful Bid
When the highest bidding is confirmed by dropping the auctioneer’s hammer or in other public manners, the Bidder with
the highest bidding succeeds in the bid which means that the
Bidder becomes to be the Buyer and the Buyer shall sign the
writing confirmation.
Article 16 Remuneration and Expenses
The Bidder will be deemed as the Buyer of the Lot after succeeding in bidding and shall pay the Company a remuneration
equal to 15% of Hammer Price and other Expenses and acknowledge that the Company is entitled to charge commission
and other costs payable by the Seller in accordance with Article
34 hereof.
Article 17 Payment
The Buyer shall make full payments in a lump sum to the
Company within seven days after the Sale Date and take the
Lot back. The Buyer shall also undertake packaging charges,
