CONDITIONS OF BUSINESS
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’s Republic of China and the Articles of Association of the Company with reference to international general practices.
Article 2 Definitions and Interpretation
The terms used in the Conditions shall have the following meanings:
(1) “We/Us/Our/Company” means China Guardian Auctions Co., Ltd..
(2) “the Company’s domicile” means 2-603 Henderson Center, 18 Jianguomennei St., Dongcheng District, Beijing, People’s Republic of China, and any other address registered with relevant Administration of Industry and Commerce 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 his/her/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 for the Lot in auctions according to provisions of the Laws of People’s Republic of China and who has gone through the registration and necessary procedural formalities with the Company. The Bidder shall satisfy all provisions with respect to conditions of sale or qualification of the Bidder if required by Laws. Under the Conditions, the Bidder shall include any of his/her/its agents unless otherwise provided hereunder or in a particular context.
(5) “the Buyer” means the person who purchases the Lot with the highest bid price in auctions held by the Company, unless state-owned cultural heritage collection entities appointed by the Administration of Cultural Heritage successfully exercise state’s pre-emptive rights within the time period provided in the relevant Laws and rules of the Company, then under such circumstance, the state-owned cultural heritage collection company shall be the Buyer.
(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 and the published date of an auction, the actual date 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 during auctions held by the Company.
(9) “Hammer Price” means the price for selling the Lot to the Buyer which is confirmed by the auctioneer dropping the hammer or in any other public manner.
(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 expenses charged including but not limited to expenses with respect to insurance, making catalogue and other publication materials, packaging, transportation, storage, custody, remittance and any other expenses pursuant to relevant Laws and provisions hereunder the Conditions.
(13) “Reserve” means the lowest selling price of Lot raised by the Seller and confirmed with the Company in the consignment auction contract or confirmed by the Company with the Seller’ authorization.
(14) “Reference Price” means the estimate selling price of the Lot provided in the catalogue or other descriptive materials. The Reference Price is estimated prior to the Auction Date, which cannot be deemed as the fixed sale price and is not legal binding.
(15) “Storage Fee” means the fee payable by the Buyer or the Seller under the Conditions relating to storage of the Lot, and 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.
(16) “Laws” means laws, administrative regulations, state department rules and regulatory document promulgated and amended subsequently by competent authorities in People’s Republic of China.
(17) “PRC” means People’s Republic of China.
Article 3 Application Scope
The Company is legally qualified to conduct auction business pursuant to the PRC Laws. The Company can organizes and conduct auctions within the scope permitted by the PRC Laws and policies. The Seller, the Bidder, the Buyer and any other concerned parties participating in the Company’s auction in relation to the artworks, crafts and other collections shall be deemed to accept in full and bound by the Conditions.
The Company shall open particular auctions to internet bidders. Any bidder participating in on-site auctions through internet bidding system shall act in accordance with the effective Conditions of Internet Bidding as well.
Article 4 Special Notice
The Seller, the Bidder and the Buyer participating in the Company’s auction should read the Conditions carefully and act in accordance with the Conditions. If any party does not read the Conditions carefully, such party shall bear any loss or liability incurred thereupon.
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. However, if the state-owned cultural heritage collection entities appointed by the Administration of Cultural Heritage successfully exercise state’s pre-emptive rights within the time period provided in the relevant Laws and rules of the Company, then under such circumstance, the state-owned cultural heritage collection entities shall be the Buyer. The Company, the Seller and the Buyer shall acknowledge the sale of the Lot and its closing, enjoy the right and assume the obligations provided by Laws and the Conditions. Any party that fails to perform obligations shall bear its/his/her corresponding legal liabilities. The Company is entitled to postpone or cancel its auction due to weather condition or other reasons, and it shall be exempted from compensation to the Bidder.
Article 5 Exclusion of Liability
The Company especially declares that the Company cannot guarantee the genuineness, quality and value of the Lot, and the Company shall not bear the liability for guaranteeing the drawbacks. All Lots shall be sold status quo.
The Bidder 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. Any bid made by the Bidder during the Company’s auctions shall be deemed as the completion of inspection and valuation to the genuineness, quality and value of the Lot, satisfaction of the genuineness, quality and value of the Lot and full acknowledgement and acceptance to the defect (if any) of the Lot by the Bidder. By participating in bidding, the Bidder shall acknowledge his/her/its willingness to bear any possible risk and waive his/her/its right to make any objections to the genuineness, quality and value of the Lot.