Chapter I General Provisions
Article 1 Governing Law
These Conditions of Business (hereinafter referred to as “these Conditions”) are made in accordance with the
Auction Law of the People’s Republic of China, other applicable laws and regulations and international practices.
Article 2 Defi nitions and Interpretation
The terms used in these Conditions shall have the following meanings:
(1)“Company” means Beijing BoMei Auctions Co., Ltd.
(2)“Bidder ” means a natural person, legal person or any other organization registered for an auction held by
the Company, having completed necessary formalities and bidding for a Lot or Lots. The Bidder shall meet
qualifi cations and Conditions set forth in applicable laws and regulations of China in respect of buying a Lot or
Lots. For the purpose of these Conditions, unless otherwise provided herein or the context otherwise requires,
“Bidder” shall include any of its agents.
(3)“Buyer ” means the highest Bidder buying the Lot at an auction held by the Company.
(4)“Seller ” means a natural person, legal person or any other organization that consigns the Lot to the Company
for auction in accordance with these Conditions. For the purpose of these Conditions, unless otherwise provided
herein or the context otherwise requires, “Seller” shall include any of its agents.
(5“Lot ” means any item(s) deposited with the Company for sale at auction in accordance with law.
(6)“Auction Date” means, in respect of an auction, the date announced by the Company on which the auction will
offi cially begin. In the case of any discrepancy between the actual date of auction and the date announced, the
actual date of auction shall prevail.
(7“Sale Date” means, in respect of an auction held by the Company, the date on which the auctioneer confi rms
the sale of any Lot by striking his hammer or in any other public manner.
(8)“Hammer Price” means the amount of the highest bid accepted by the auctioneer in relation to a Lot.
(9)“Proceeds of Sale” means the net amount owed to the Seller equal to Hammer Price less commission pro rata,
all Expenses and any other amounts owed to the Company by the Seller.
(10)“Purchase Price” means the total amount payable by Buyer for its bid, including Hammer Price, commission
and other Expenses payable by Buyer as well as the charges caused by Buyer’s defaults.
(11)“Expenses ” means costs and charges , including but not limited to those with respec t to Lot
insurance,catalogue and other advertisements, packaging, transportation and storage and any other Expenses
incurred pursuant to relevant laws,regulations and provisions hereof.
(12)“Reserve” means the minimum (confi dential) price at which the Seller agrees to sell the Lot.
(13)“Reference Price” means the price of the Lot provided in the catalogue or other descriptive materials and
estimated prior to the Auction. Subject to possible changes from time to time, the Reference Price can not be
deemed as the fi xed sale price.
Article 3 Scope of Conditions
The Company organizes auctions pursuant to the laws, regulations and policies of China . These Conditions shall
ensure the benefi t of and be binding upon Seller, Bidder, Buyer and any other parties concerned (including but
not limited to the agents of Seller, Bidder and Buyer) participating in an auction held by the Company.
By bidding at an auction held by the Company, whether present in person or by agent, by written bid, telephone
or other means, Bidders shall be deemed to have accepted these Conditions. All disputes between the parties
participating in the Company’s auction shall be solved in accordance with the provisions of these Conditions.
Article 4 Warranty against Defect
The Company denies any warranty of the authenticity and/or quality of any Lot. Any descriptions, statements and
comments in connection with the Lot provided by the Company shall be for information only and in no way shall
they constitute any warranty of the authenticity and/or quality of the Lot.
All Lots are sold “as is”. The Bidder and/or its agent shall bear the responsibility of inspecting the Lot in person or
through experts designated thereby and shall be legally liable for its bid for any Lot.
By bidding at an auction held by the Company, the Bidder shall be deemed to have fully inspected the Lot in which
they are interested in terms of authenticity and quality thereof and have satisfi ed themselves as to Condition
and value of the Lot. By bidding at auction the Bidder acknowledges that he is willing to bear any possible risk in
bidding and that he has waived the rights of challenging the authenticity and/or quality of the Lot.
Article 5 Special Notice
When the auctioneer confi rms the highest bid by striking his hammer or in any other public manners at an auction
held by the Company, the highest Bidder shall be the Buyer of the Lot and the sale contract concerning the Lot
shall come into effect immediately.Whether the purchase confi rmation has been signed or not shall have no effect
on the fact that the sale contract has come into effect . At that moment, the fact that the Lot has been lawfully sold
to the highest Bidder shall be accepted by Beijing BoMei Auction Co., Ltd, all Bidders, Seller and Buyer, who shall
be entitled to and assume any rights and obligations arising therefrom under laws and these Conditions any party
failing to perform obligations thereof shall assume relevant legal liabilities.
Any Seller, Bidder, Buyer and other parties concerned participating in an auction held by the Company shall read
these Conditions carefully and conform to the provisions hereof. All parties shall be liable for their own actions at
auction and any loss caused by their failure to read the Conditions carefully.
The Company Reserves and will under appropriate circumstances practice the right to alter these Conditions,
particularly by the form of a bulletin and /or a per announcement of Auctioneer at auction. Any changes in these
Conditions so made shall supersede all prior agreements.
Chapter II Conditions Mainly Concerning the Seller
Article 6 Consignment procedures when the Company acts as an agent of the
Seller to auction its property:
(1)The Seller as a natural person shall hold a valid identity certifi cate and enter into a consignment contract with
the Company;
(2)The Seller as a legal person or any other organization shall hold a valid certificate of registration, identity
certifi cate of legal representative, power of attorney and identity certifi cate of agent and enter into a consignment
contract with the Company;
(3)When the Seller enters into a consignment contract with the Company, the Company shall be automatically
authorized to to exhibit, presentation, produce pictures, illustrations, catalogue, or other forms of images of the
Lot.
Article 7 The Seller’s Agent
When arranging for consignment on behalf of the Seller, the Seller’s agent shall submit to the Company the
following documents:
(1)If the agent is a natural person, valid identity certifi cate;
(2)If the agent is a legal person or any other organization, valid certifi cates of registration, identity certifi cate of
legal representative, power of attorney issued by such legal person or any other organization to the agent (natural
person) thereof and the identity certifi cate of the agent (natural person);
(3)Power of attorney issued by the Seller to the Seller’s agent through lawful procedures;
The Company has the right to check the above documents in a legal way.
Article 8 The Seller’s Warranties
The Seller hereby makes irrevocable warranties as follows to the Company and the Buyer with respect to the
consigned Lot:
(1)The Seller has exclusive and absolute ownership and legal right to dispose of the Lot. Without prejudice to
any legal interest (including copyright) of any third party, the auction of the Lot will not violate any relevant law or
regulation;
(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 fl aw or defect of the Lot without any concealment and fabrication;
(3)The Seller shall indemnify and hold the Company and/or the Buyer harmless 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 and all Expenses and costs (including but not limited to attorney’s fees, survey fees and court
costs) incurred in connection therewith arising out of or in any way attributable to any breach of above warranties.
Article 9 Reserve
All Lots are offered subject to a Reserve, unless otherwise agreed by the Seller and the Company. The Reserve
shall be determined by the Seller and the Company in writing and no modifi cation or amendment of the Reserve
shall be binding upon the parties unless prior consent of the other party is obtained.
In the event that the Lot is not sold in the auction, the Company shall have right to sell such Lot at the Reserve
after the auction and be entitled to commission therefor from the Seller, except for violating the relevant laws and
regulations.
Under no circumstances shall the Company accept any liability for failure in sale due to bidding lower than the
Reserve at the auction.
Article 10 The Company’s Discretion
The Company may decide on the followings at its absolute discretion:
(1)Explanation and/or appraisal of any Lot made by the catalogue of Lot and/or news media and/or in other ways;
(2)Adoption of expert’s opinion;
(3)The arrangement for illustrations in catalogue, exhibitions and other advertising activities in connection with
Seller’s Lot and charge rates accrued thereupon;
(4)Whether the Lot is suitable for the Company to auction;
(5)The place, date, Conditions and way of auction.
Article 11 Unauctionable Lot
After the Seller has entered into the consignment 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 shall, at the site which the Company
at its sole discretion considers appropriate,collect the Lot within 30 days from the date of the Company’s notice
dispatched (the date when the notice is dispatched shall be counted and the fees for the packaging and handling
shall be paid by the Seller), in which case the consignment contract made between the Seller and the Company
shall cease on the date the Seller collects the Lot. If the Seller fails to collect the Lot during the above- mentioned
period, the consignment contract will be automatically terminated upon expiration of the term thereof. The
Company Reserves the right to dispose of the Lot in any way it deems reasonable if the Seller still fails to collect
the Lot within 7 days following the ceasing of the consignment contract, in which case the proceeds from such
disposal shall be collected by the Seller after deduction of all costs and Expenses incurred, if any remaining
amount exists after such deductions.
Article 12 Suspension of Auction
The Company may suspend any auction at any time under any one of the following circumstances:
(1)The Company has objection to the ownership or authenticity of the Lot;
(2)Any third party has objection to the ownership or authenticity of the Lot with undertakings to provide relevant
evidence, make security as required by the Company and take liability for all legal repercussions and losses due to
suspension of auction;
(3)The Company and/or any third party has objection to representations made by the Seller or the accuracy
regarding the Seller’s warranty provided in Article 8 hereof;
(4)The Company and/or any third party has any evidence to prove the Seller has already violated or is to violate any
term of these Conditions.
Article 13 Withdrawal of Lots by Seller
The Seller may withdraw the Lot at any time prior to the Auction Date subject to the Company’s consent and a
written notice stating the reasons. In the case that the catalogue or any other advertisements of the Lot have
begun to be printed upon the Seller’s withdrawal, the Seller shall pay an amount equal to 20% of the insured value
of the Lot and other Expenses in connection therewith. In the case that the catalogue or other advertisements
have not been printed, the Seller shall pay an amount equal to 10% of the insured value of the Lot and other
related Expenses. The Seller shall be liable for any disputes and claims caused by withdrawal of a Lot. The
Seller shall indemnify, defend and hold the Company harmless from any and all claims, liabilities and Expenses,
including without limitation attorney’s fees and court costs, which may be imposed on the Company as a result of
the aforementioned withdrawal.
Article 14 Insured Automatically
Unless otherwise agreed by the Seller and the Company, all the Lots will be automatically covered under the
insurance of the Company as soon as the Seller enters into the consignment contract with and delivers the Lot
to the Company. The insured value shall be based on the Reserve agreed by the Seller and the Company in
the consignment contract (if no Reserve is provided, the insured value is the one agreed by both parties; if the
Reserve is adjusted, the insured value shall be the original Reserve). The insured value is only subject to insurance
and claims other than the Company’s warranty or guarantee for the value of the Lot and the Hammer Price of the
Lot.
Article 15 Insurance Premium
Unless other wise agreed by the Seller and the Company, the Seller shall pay the Company an insurance premium
equal to 1% of the Hammer Price of the Lot after sale. In the case that the Lot fails to sell, the insurance premium
payable by the Seller to the Company shall be 1% of the Reserve.
Article 16 Insurance Period
In the case that the auction of the Lot succeeds, the insurance period shall be terminated on the 7th day (including
the closing date) from the Auction Date or the date when the buyer receives the Lot (whichever is earlier). If
unauctioned or the auction fails, the insurance period will end on the 7th day from the date when the Company
issues the notice of taking back the Lot.
Article 17 Insurance by Seller
In the event that the Seller notifi es the Company not to arrange insurance for the Lot in writing, he shall undertake
to bear all the risks of the Lot and the following liabilities:
(1)To indemnify and hold the Company harmless from and against any claims or actions incurred or brought by any
third party with respect to the losses or damages of the Lot;
(2)To indemnify and hold the Company and/or any other parties harmless from and against any losses and
Expenses in relation to the losses or damages of the Lot caused for any reason;
(3)To notify the terms of indemnity hereunder to any insurer of the Lot.
Article 18 Uninsured
The Company will not be liable for any damages or losses of the Lot caused by natural wear, inherent fl aws ,
inherent or potential defects , inherent material changes, self- combustion, self-warming, oxidation, rust, leakage,
rat - bite, woodworm, changes in atmospheric (climate, temperature or humidity) Conditions or other reasons of
natural changes, or caused by earthquake, tsunami, war, actions similar to war, hostile actions , armed confl icts,
terrorism, rebellion, coup, strike, riots, traffi c accident, aviation accident, or nuclear fi ssion, nuclear fusion, nuclear
weapon, nuclear radiation, or radioactive pollution. The Company will not take liability for any damages to or any
losses of frames, glass, drawer, bottom mat, trestle, mounting, insert pages, roller or other similar accessories
caused for any reason.
Article 19 Insurance Indemnity
Any damages or losses of the Lot caused by incidents or disasters covered by insurance the Company purchased
for the Lot shall be handled in accordance with applicable laws and regulations of the People’s Republic of China
regarding insurance. The Company shall pay insurance indemnities less all Expenses incurred by the Company to
the Seller after the Company obtains such indemnities from the insurance Company.
Article 20 Non-Bidding
The Seller shall not bid for any Lot consigned to the Company thereby, nor authorize any other person to bid on
behalf thereof. The Seller shall be liable for and indemnify the Company against any losses and damages caused
by violation of this provision.
Article 21 Commission and Expenses
Unless otherwise agreed by the Seller and the Company, the Seller shall authorize the Company to deduct 10% of
the Hammer Price as commission and other Expenses from the Hammer Price .Never the less the Company acts as
the agent of the Seller, the Seller agrees that the Company may be entitled to the Buyer’s remuneration and other
Expenses payable by the Buyer in accordance with provisions in Article 47 hereof.
Article 22 Service Fee for Unsold Lot
In the case that the auction of the Lot fails due to bidding lower than the Reserve, the Seller shall authorize the
Company to charge the Seller a service fee of unsuccessful auction equal to 3% of the Reserve (or the insured
value if the Reserve is not available) and other Expenses payable by the Seller.
Article 23 Payment of Proceeds of Sale
In the case that the Buyer makes full payment to the Company in accordance with provisions in Article 48 hereof,
the Company shall pay the Proceeds of Sale to the Seller in RMB after 35 days of the Sale Date.
Article 24 Deferred Payment
In case the Company does not receive the full payment from the Buyer upon the expiry of payment period under
Article 48 hereof, the Company will pay the Proceeds of Sale to the Seller within 7 business days upon receipt of
such full payment from the Buyer.
Article 25 Taxes
The Seller shall be responsible for paying any tax imposed on its Proceeds of Sale in accordance with applicable
laws and regulations. The Company will withhold any tax the Company is obligated to withhold under relevant
laws and the Seller shall assist the Company in completing all related formalities and bear corresponding taxes.
Article 26 Assistance in Collecting Deferred Payments
The Company shall be authorized by the Seller to collect deferred payment from the Buyer and claim against
the Buyer for liabilities for breach of contract in the Company’s name at the same time of being arranged for
consignment. In the event the Buyer fails to make full payment to the Company within 7 days after the Sale Date
(counting from that day ),the Company is entitled to recover the commission and other Expenses payable by the
Buyer in accordance with provisions in Article 55 hereof and to take necessary measures ( including but not limited
to entering into litigation, arbitration and any dispute resolution procedures held by the public authorities ) as it
deems practical to assist and/or represent the Seller in collecting deferred payments.
However, the Seller and Company hereby agree that the aforementioned provisions shall under no circumstance
exclude the right of the Seller to collect deferred payment from the Buyer in person or through any third party or
involve any obligation of the Company to collect deferred payment from the Buyer on behalf of the Seller. The
Company shall have no responsibilities and liabilities to the Seller in the case of any deferred payment by the
Buyer.
Article 27 The Company’s Discretion
The Company may determine the following matters, as the case may be, upon authorization by the Seller ( at the
Seller’s Expenses ):
(1)To agree special terms on how to make the payment of Purchase Price;
(2)To remove, store and arrange insurance for sold Lot；
(3)To settle claims brought by the Buyer or the Seller in accordance with relevant terms and Conditions hereof;
(4)Take other necessary steps to collect deferred payment from the Buyer.
Article 28 Unsold Lot
In the case that the Lot is not sold, the Seller shall, at the site which the Company at its own discretion considers
appropriate, take back the Lot within 30 days upon receipt of the Company’s notice ( counting from that day and
the packing and shipping at the Seller’s own Expenses) and, pursuant to these Conditions, pay the Company fees
for failed auction and all other Expenses. If the Seller fails to do so within said period, the Company Reserves
the right to resell the Lot by public auction or in any other way under these Conditions the Company considers
appropriate and pay the Seller the Proceeds of Sale less unsold fees and other Expenses accrued from the fi rst
auction and all costs incurred in the resale of the Lot.
Article 29 Risks and losses
The Seller shall take liability for any risk and/or loss incurred beyond the aforementioned time limits in case of
failure to take back the unauctioned or unsold Lot within said time limits.All risks and Expenses of unsold and/
or unproductive batches shall be borne by the Seller on the thirtieth day after the Company serves the recall
notice or the date when the buyer receives the batch, whichever is earlier. If the Seller requests the Company to
return the goods within the time limit specifi ed in this clause, and the Company agrees, the Seller shall bear all
risks, Expenses and losses when the goods leave the place designated by the Company. Generally speaking, the
Company is not responsible for arranging transportation insurance after the goods leave the designated place,
unless the Seller explicitly asks the Company to do so and pay the insurance premium in advance. At the request
of the Seller, the Company can assist in returning the goods to the Seller by mail, express delivery or third-party
transportation. Once the Company delivers the goods to the mailing, express or transportation offi ce or the
AUCTION RULES
