The Buyer shall settle any bonded storage fees (if applicable)
before collecting the item.
(9) The standard fee for bonded storage in mainland China is 15
RMB per item per day for items with a volume not exceeding
0.5 cubic meters (including packaging). For items exceeding 0.5
cubic meters, the fee is 15 RMB per 0.5 cubic meters per day.
Any excess less than 0.5 cubic meters shall be charged as 0.5
cubic meters.
7. The Buyer’s liabilities to an auction article after the successful bidding
After the day when the article is sold, the Buyer shall be responsible for
the article he has purchased. Even if the article is still kept by the Auctioneer
or an agent, the Buyer shall be responsible for the losses or damages not
caused by the Auctioneer’s intentional act during the keeping period.
8. Remedies for arrears and deferred collection of auctioned articles
If the Buyer fails to pay the amount in full or does not take the auction
article away, the Auctioneer shall have the right to terminate the agreement
at any time and require the buyer to pay the penalty and assume the liability
for the loss. The Auctioneer shall be entitled to exercise one or more rights
as follows without informing the Buyer in advance:
(1) Bring a suit to the court where the Auctioneer is under jurisdiction
against the Buyer for his breach of contract, and demand the Buyer
to pay the hammer price, commission and other expenses as well as
compensation for all the losses for his breach of contract (including, but
not limited to fees for lawyer’s first, second instance and review as well
as prosecution procedure. Every procedure shall be no more than 7%
of the value of the subject matter of the action or the subject matter of
execution to be applied for, and guarantee of attachment).
(2) Do not transfer any one of the articles at the Auctioneer to the Buyer.
(3) Denounce the defaulter by name and his default practice through news
media.
(4) Sell the article again by auction or by other means. If the Auctioneer puts
the concerned article in auction again or sells the article, the Buyer shall
pay the commission which himself and the Seller should have paid in the
previous auction. If the article is auctioned/sold at the price lower than
the original one, the Buyer shall pay the difference to the Auctioneer. If
the article is auctioned/sold at the price higher than the original one, the
surplus shall go to the Auctioneer or the Seller, which does not exempt
the original Buyer from bearing the liability for any breach of contract.
(5) From the 8th day after the sale date, the Auctioneer shall charge the Buyer
interest at a rate of 0.05% per day and storage fee at a rate of 0.03% per
day on the due and unpaid amount until such a payment is made fully,
unless otherwise agreed by the Buyer and the Auctioneer. If the Buyer stalls
the payment, the interest and storage fee accrued due to the delay as well as
other losses caused to the Auctioneer accordingly shall be paid as well as the
purchase price and other amounts the Buyer shall pay to the Auctioneer
(6) The deposit shall not be returned to the Buyer. And the Buyer shall pay
30% of the unpaid amount to the Auctioneer as a penalty.
(7) In the event that the Buyer fails to pay any one of the articles at the
agreed time according to the Conditions of Business after the successful
bidding of several articles under the same bidding paddle, the Auctioneer
shall not return all the deposits to the Buyer. The Buyer has no right to
take away any one of the articles before he pays off in full.
(8) Within 7 days of the successful bidding, if the Buyer fails to pay the due
amount to the Auctioneer and the Seller proposes to retrieve the article,
the contract between the Auctioneer and the Buyer shall be deemed
as terminated upon the approval of the Auctioneer. The Auctioneer,
however, still has the right to require the Buyer to take the liability.
(9) After the successful bidding, if the Buyer fails to make due payment, the
Auctioneer shall have the right to entrust a third party to collect all or
part of the default payment from the Buyer.
(10) The Auctioneer may offset any amounts owed to the Buyer in other
transactions against any amounts the Buyer owes to the Auctioneer,
its parent company, subsidiaries, branches, offices (contact points), or
affiliated companies. Any payments made by the Buyer may be used
to settle any amounts owed to the Auctioneer, its parent company,
subsidiaries, branches, offices (contact points), or affiliated companies,
regardless of whether the Buyer has instructed the payment to be used
for that specific purpose.
9. Statement of Guarantee
According to the Auction Law of the People’s Republic of China, the
Auctioneer declares that the introduction and comments, including photos,
pictures, slides and news reports about any auction article made by any one
of the agents are for reference only, and can never be interpreted as a sort
of guarantee. The Auctioneer undertakes no guarantee for the authenticity
and quality of any article. So the Buyer (including the trustee) shall examine
the auction article in person and be legally responsible for his bidding.
Part II Main Stipulations for the Seller
1. The Seller and guarantee
(1) The Seller shall be the auction truster. The Auctioneer shall take
the truster as the legal owner of a certain property in the absence of
particular statements; if the article is a co-owned property, the Auctioneer
shall take the truster as the representative of the co-owners and deem
that the truster has got the permission in the absence of the truster’s
statements.
(2) The Seller shall show his Identification Card or other valid identity
certificates, together with relevant certificate about the potential auction
article when he intends to trust the Auctioneer to sell his article by
auction. The Seller should also state the origin and content of the
article to the Auctioneer and sign a “Consignment Agreement” with the
Auctioneer.
(3) The Seller shall have the “right of disposal” or ownership of the article
trusted to the Auctioneer for the sale, and he shall be legally responsible
for all disputes caused by exhibition, propaganda, publication, auction
and so on, hence the Seller shall compensate the Auctioneer for any
economic loss and defamation arising from the disputes concerned.
(4) The Seller shall provide the Auctioneer with all kinds of information he
knows or ought to know, regarding the origin and defects of the potential
auction article, so as to facilitate the Auctioneer to check the article.
(5) The Seller shall not bid his trusted auction article nor trust or employ
others to bid for the trusted article.
2. As for the article trusted by the Seller, the Auctioneer shall be fully entitled
to handle the following matters:
(1) To decide whether a certain article is fit for auction, and the time, place,
terms and by which means the auction will be held.
(2) To introduce and comment on any auction article in the catalogue and
through news media.
(3) To terminate the agreement (withdraw an article) any time before the
auction day, or to adjust its base price after negotiating with the Seller.
3. The base price
(1) All auction articles shall have their respective base price. The Seller shall
have the right to reach a written agreement with the Auctioneer about
the base price. If the Seller wishes to change the base price agreed by
both parties, he shall get the approval from the Auctioneer first.
(2) The Auctioneer shall not sell an auction article at a price that is lower
than the base price. Under the condition that the Auctioneer guarantees
that the Seller’s actual proceeds is no less than the amount he shall get
when the article is sold at the base price, the Auctioneer shall auction the
article at a price that is lower than the base price.
4. Auction on consignment
It refers to the way in which the Seller negotiates with the Auctioneer
before signing a Consignment Agreement according to which the Seller shall
get the auction proceeds after paying the Auctioneer a certain proportion of
auction fee and commission on the basis of the hammer price.
5. Commission and other charges
(1) Except otherwise regulated, commission accounts for 10% of the
hammer price, while the Seller will not be charged in case the trusted
article goes unsold.
(2) Premium accounts for 1% of the hammer price; printing and
photography fees can be referred to in the Auctioneer’s charging list.
(3) If the Seller refuses to pay the above-mentioned commission and other
charges, the Auctioneer shall deduct the amount from the auction
proceeds after the sale of the article.
(4) The Seller shall acknowledge all kinds of reasonable expenses the
Auctioneer collects from the Buyer according to the agreements.
6. Insurance
(1) Except otherwise hinted by the Seller, the Auctioneer has the right to buy
insurance for the article or keep the article from the day when the Seller
and the Auctioneer sign a Consignment Agreement and the Seller trusts
the article to the Auctioneer to the day when the Buyer completes full
payments of his bidding or within 35 days after the auction date.
(2) The Seller shall pay 1% of the hammer price as premium. If the
article fails to be auctioned, the Seller shall pay 1% of the base price as
premium.
(3) If the Auctioneer is demanded by the Seller in written form not to effect
the insurance of his auction article, then the Seller shall be responsible
for all the accidents while the Auctioneer shall not be responsible for
them. And the Seller shall be liable if there are economic losses and
expenses caused by the accidents.
(4) The Auctioneer shall not be responsible for the damages caused by insects
and/or change of weather or other irresistible causes to the auction
article. If there are other reasons accounting for the damage done to
the article and indemnity is needed, then the matter shall be handled in
accordance with relevant Chinese insurance laws and regulations. Under
the condition that the insurance company agrees to pay the claimed
damages, the Seller shall get the rest of the indemnity after deducting the
fees (exclusive of commission) he shall pay to the Auctioneer.
7. Payment of proceeds of the auction
(1) If the Buyer has paid off the price in full to the Auctioneer and there is
no dispute whatsoever, the Seller shall get the rest of the sale proceeds
after deducting the fees as regulated in the Consignment Agreement and
Conditions of Business starting from the 35th day after the sale date,.
(2) If the Buyer pays the due amount after (or more than) 35 days of the
auction date to the Auctioneer, the Auctioneer shall pay the proceeds to
the Seller as regulated within 7 working days after receiving the Buyer’s
payment in full.
(3) The Auctioneer has the right to prioritize the proceeds or any other
amounts payable to the Seller to offset any amounts owed by the Seller to
