Chapter II Conditions Concerning the Seller
Article 6 Consignment Procedures
When arranging for consignment, the Seller shall hold a valid identity card or passport or other certificates approved by the competent government of the PRC in the case of the Seller being a natural person, who must also sign a contract with the Company. A valid certificate of registration, ID of legal representative or other legal authorization document is required in the case of the Seller being a legal entity or other organization, which must also sign a consignment auction contract with the Company.
Content within the Conditions are important agreement between the Company and the Seller and constitute an important part of the consignment auction contract. Outstanding issues in the Conditions shall be solved in accordance with the Conditions.
When the Seller consigns the Lot to the Company for auction, the Seller shall automatically authorize the Company to exhibit, display, make pictures, illustrations, catalogue, or video images or publication materials in other form of the Lot.
Article 7 The Seller’s Agent
When the Seller’s agent arranges for consignment, the Seller’s agent shall submit to the Company a relevant authorization letter and the Seller and his/her/its agent’s legal identity certificate, and enter into a consignment auction contract with the Company. The Seller and his/her/its agent shall hold a valid identity card or passport or other certificates approved by the competent government of the PRC in the case of a natural person. A valid certificate of registration, ID of legal representative or other legal authorization documents is required in the case of a legal person or other organization.
The Company reserves the right to examine the above consignment arrangement in any manner the Company considers reasonable. The examination or other actions taken by the Company shall not lessen, exempt or influence liabilities or obligations borne by the Seller.
Article 8 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 Laws;
(2) The Seller has, to the best of his/her/its knowledge, made full and complete disclosure and description to the Company with respect to the origin and defect of the Lot without any concealment and fabrication; and
(3) If the Seller breaches the above warranties and thus lead to claim or proceedings brought by the actual owner or any third party who claim to have right, the Seller shall indemnify and hold the Company and/or the Buyer harmless from and against any losses and damages if incurred, and shall bear all expenses, costs and relevant legal liabilities incurred in connection therewith.
Article 9 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 after negotiation. After determining the amount of Reserve by the Seller and the Company, any modification of the Reserve shall be need the two parties’ prior written consent. In no circumstances, shall the Company assume any liability for failure in sale due to bidding lower than the Reserve at the Company’s auction.
Article 10 The Company’s Discretion before Auction
The Company may decide the followings at the Company’s absolute discretion:
(1) Renaming of the Lot under the consignment auction contract, explanation and appraisal of any Lot as through the catalogue and/or news media and/or in other carriers;
(2) Whether to consult any expert or not;
(3) The arrangement for the illustration of the Lot in the catalogue, with respect to including but not limited to the order, location, page size and relevant expenses incurred therefore; pattern of exhibition/display of the Lot; other arrangement during the exhibition/display of the Lot and expenses incurred therefore;
(4) Unless otherwise agreed by the Seller and the Company, 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;
(5) The Company will announce the condition and procedure to deal with the paddle affixed with number by the Bidder before the Auction Date, including but not limited to require qualifications of the Bidder for the paddle affixed with number, in accordance with different conditions and manners of auction.
Article 11 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 receiving the Company’s notice on collecting the Lot and bear fees for the packaging and transportation. The consignment auction contract between the Seller and the Company will terminate 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 terminate on the expiration date of the aforementioned thirty day time limit. If within seven days after the termination 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 Clause (15) of the Conditions from eighth day after the termination of the consignment auction contract. If the Seller does not collect the Lot within ninety days after the termination of the consignment auction contract, the Company has right to act in accordance with Article 30 of the Conditions.
Article 12 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 objection to the ownership and authenticity of the Lot and is able to provide relevant evidence accepted by the Company, while willing to take all legal responsibilities for all legal repercussions and losses incurred due to suspension of auction in writing;
(3) The Company has the objection to the explanation of the Seller or the accuracy regarding the Seller’s warranty provided in Article 8 of the Conditions;
(4) The Company has any evidence to prove the Seller has already violated or will violate any term of the Conditions; and
(5) Any other reasonable causes.
Article 13 Withdrawal of Lots by the Seller
The Seller may withdraw the Lot at any time prior to the Auction Date by issuing a written notice stating the reasons to the Company. The Seller shall pay the Company liquidated damage in the amount equal to 30% of the insurance amount of the Lot. If such liquidated damage cannot remedy the Company’s Loss, the Seller should compensate the Company for all losses incurred due to the withdrawal of the Lot.
In case of withdrawal of the Lot, the Seller shall take the Lot back within thirty days after receiving the notice on collecting the Lot sent by the Company. If the Seller does not collect the Lot within the aforementioned thirty day time limit, the Seller shall pay the Company Storage Fee according to the standard set forth in Article 2 Clause (15) of the Conditions from next day after the expiration date of the aforementioned thirty day time limit. If the Seller does not collect the Lot within ninety days after the foregoing time limit, the Company has right to act in accordance with Article 30 of the Conditions.
Any dispute or claim arising out of the Seller’s withdrawal of the Lot shall be borne by the Seller, and has nothing to do with the Company.
Article 14 Automatic Insurance
Unless otherwise instructed by the Seller in writing, all Lots will be automatically covered under the insurance policies purchased by the Company as soon as the Seller signs the consignment auction contract with the Company and delivers the Lot to the Company. The insurance amount shall be based on the Reserve agreed by the Seller and the Company in the consignment auction contract (if there is no Reserve, the insurance amount shall be the one agreed by both parties; if the Reserve is adjusted, the insurance amount shall be the adjusted Reserve of the Lot).
The insurance amount is only applicable to insurance and claim for compensation after the occurrence of insurance accident, is not Company’s warranty or guarantee for the value of the Lot, and does not mean that the Lot can be sold for an amount equal to the insurance amount by auction held by the Company.
Article 15 Insurance Premium
Unless otherwise agreed by the Seller and the Company, the Seller shall pay an insurance premium according to the following provisions:
(1) If the Lot is not sold, the insurance premium payable by the Seller shall be 1% of the Reserve (if there is no Reserve, the agreed insurance amount shall be applied; if the Reserve is adjusted, the adjusted Reserve shall be applied).
(2) If the Lot is sold, the insurance premium payable by the Seller shall be 1% of the Hammer Price.
Article 16 Insurance Period
Insurance period shall commence at the time when the Seller signs the consignment auction contract with the Company and delivers the Lot to the Company.
If the Lot is sold, the insurance period shall terminate at the earlier of the expiry of thirty days after Sale Date and the date when the Buyer collects the Lot. If the Lot is unsold or not auctioned, the insurance period shall terminate at the earlier of the date when the Seller collects the Lot and the expiry of thirty days after the Seller received the Company’s notice on collecting the Lot.
Article 17 Insurance by the Seller
In the event that the Seller notifies the Company not to apply insurance for the Lot in writing, it shall undertake all the risks and the following liabilities (unless otherwise adjudicated by court or arbitration commission):
(1) To indemnify the Company from and against any claims or actions brought by any other party with respect to the losses or damages of the Lot;
(2) To hold the Company and/or any other parties harmless from and against any losses and expenses in relation to the damages and/or losses of the Lot caused by any reason; and
(3) To notify the terms of indemnity hereunder to any insurer of the Lot.
Article 18 Uninsured
The Company will not be liable for and the insurance does not cover the following matters:
(1) Losses of the Lot caused by any repair, restoration, retouching or similar work process; or by natural wear, deterioration, inherent or potential defects, inherent flaws, inherent material changes (natural deformation), self-combustion, self-warming, oxidation, rust, leakage, rat-bite, woodworm, insect bites, insect pests, mildew, fungi, rot, perspiration, water stains, changes in atmospheric (climate or temperature) conditions, changes in normal water level, or other reasons of gradual changes; or by air pollution, land pollution, water pollution and other non-radioactive contamination, earthquake, tsunami, war, actions similar to war, hostile actions, armed conflicts, terrorism, rebellion, coup, strike, riots, civil riots, administrative action or judicial action, or nuclear fission, nuclear fusion, nuclear weapon, nuclear material，nuclear radiation, or radioactive pollution; or by theft during fire or explosion; or by malfunction of computer hardware, programs, software, chip, vehicle, integrated circuits and other similar electronic devices directly or indirectly caused by special year or adjustment of calendar or type calendar (including leap year); or by sonic from airplane or other aircraft’s high-speed or supersonic flight;
(2) Damages or losses of book frame, glass, drawer, bottom mat, stand, mounting, insert pages, roller or other similar accessories caused by any reason;
(3) Other indirect losses caused by any circumstance.