Article 19 Insurance Indemnity
When any incidents covered by the insurance the Company purchased for the Lot occurs, such incidents shall be handled in accordance with the PRC Laws on insurance. The Company shall pay compensation to the Seller in the amount up to insurance indemnities deducting all expenses incurred by the Company (except for commissions), after the Company obtains such indemnities from the insurance company.
Article 20 Non-Bidding
The Seller shall neither bid for the Lot consigned to the Company by himself/herself/itself, nor authorize any other person to bid on his/her/its behalf. The Seller shall be liable for and indemnify the Company for any losses and damages caused by violation of this provision.
Article 21 Commission and Expenses
Unless otherwise agreed upon by the Seller and the Company, the Seller hereby authorize the Company to deduct 10% of the Hammer Price as commission and any Expenses.
The Seller agrees that the Company is entitled to charge the Buyer with a commission equal to 15% of the Hammer Price and Expenses in accordance with provisions in Article 46 of the Conditions.
Article 22 Service Fee for Unsold Lot
In case the Lot is not sold because the bidding price is lower than the Reserve, the Seller hereby authorize the Company to charge the Seller a service fee for unsuccessful auctioning in the amount equal to 3% of the Reserve and Expenses.
Article 23 Payment Proceeds of Sale
In the case that the Buyer makes full payment to the Company in accordance with provisions in Article 47 herein the Conditions, the Company shall pay the Proceeds of Sale to the Seller in RMB currency after thirty-five days from the Sale Date. The Seller shall bear remittance expense charged by the bank.
Article 24 Deferred Payment
In the case that the Company do not receive the full payment from the Buyer upon the expiry of the payment period under Article 47 herein, the Company will pay the Sale Proceeds to the Seller within seven working days (meanwhile such payment should be made after thirty-five days of Sale Date as well) after the receipt of full payment from the Buyer.
Article 25 Cancellation
In the event that the Buyer does not make full payment to the Company within ninety days as of the Sale Date, the Seller has right to cancel the transaction after giving the Company a notice in writing and receiving prior approval from the Company. The Company shall send a cancellation notice to the Buyer within seven working days after the Company approves the Seller to cancel the transaction. In the event that the Buyer makes full payment and/or completes collection procedure before the service of the cancellation notice of the Seller to the Company, such notice should be deemed void automatically, and the transaction shall be carried out in accordance with regulations stipulated in Article 24, under which the Seller should cooperate with the Company and under no circumstance raise objection. In the event that the Seller cancels the transaction, the Seller must collect the Lot within thirty days as of receiving the Company’s notice on collecting the Lot. The Seller shall bear fees for the packaging and transportation. In the event the Lot has not been collected within the above 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 the expiration date of the aforementioned thirty day time limit. If the Seller does not collect the Lot within ninety days after the foregoing thirty day time limit, the Company has right to act in accordance with Article 30 of the Conditions.
Article 26 Claim on Behalf of the Seller
If the Buyer does not fully pay the Purchase Price, and the Seller requires the Company to claim for the outstanding payment on behalf of the Seller to the Buyer, the Company may take appropriate actions (including but not limited to resorting to legal proceedings) to assist the Seller in collecting such outstanding payment from the Buyer as the Company deems practical. However, when the Seller requires the Company to make claims on its behalf, the Seller shall advance reasonable expense arising from it (including but not limited to litigation costs and attorney fee) to the Company. The Company shall at its own discretion decide the specific amount of the reasonable expense. When the actual expense in relation to claiming outstanding payment is determined, the Company shall return the remaining amount of the advanced payment to the Seller or request the Seller to make up for the expenses.
The above provision does not exclude the Seller’s right to demand in person or authorize any third party to demand outstanding payment from the Buyer and does not obligate the Company to demand the corresponding outstanding payment from the Buyer on behalf of the Seller under any circumstance. The Company shall not bear the corresponding liability to the Seller because of the Buyer’s failure to pay the purchase price under any circumstance.
Article 27 Taxes
The Seller is obligated to pay taxes for the Proceeds of Sale obtained pursuant to the PRC Laws. In the case that the Seller has a duty to pay a tax to the government of the PRC, while the Company is obligated to withhold and pay the tax to the competent authority in accordance with the relevant Laws of the PRC, then the Company shall withhold and pay taxes on behalf of the Seller pursuant to Laws, and the Seller shall assist in handling all the formalities. The Company should deliver the receipt of tax payment to the Seller after the payment of tax.
Article 28 The Company’s Discretion
The Company may determine the following matters:
(1) To agree to special conditions of the payment of the Purchase Price;
(2) To remove, store and purchase insurance for sold Lot;
(3) To settle claims brought by the Buyer or the Seller in accordance with relevant terms and conditions herein the Conditions;
(4) To take other necessary measures to collect the outstanding payment from the Buyer.
Article 29 Unsold Lot
In the event that the Lot is not sold, the Seller shall take back the Lot within thirty days after receipt of the Company’s notice on collecting the Lot. The Seller shall bear expenses on packing and transportation, and pay the Company fees for failed auction and all Expenses. The consignment auction contract between the Seller and the Company will terminate on the date of collection of the Lot by the Seller. If during the aforementioned 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, but the Conditions shall still be effective between the Company and the Seller. 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 30 Risks and Losses
If the Seller does not retrieve the Lot within the time limit provided in the Conditions, the Seller shall be liable to bear all risk and/or loss that occurs after the expiration of the time limit. In the event that the Seller should take back the Lot in accordance with the Conditions as a result of unauctionable Lot, withdrawal by the Seller, unsold Lot, cancellation of transaction by the Seller and other circumstances, if the Seller fails to do so, the Company shall has right to auction in public or sell the Lot in ways and conditions as the Seller deems appropriate after the expiration of the time limit provided in the Conditions. The Seller may collect the remaining amount, which is arising from forgoing disposal by the Company after deducting all losses and expenses (storage Fee, insurance premium, transportation fee and notarization fee) incurred, without any interests.
If the Seller requires the Company to assist in returning the Lot, regardless of whether the Seller delays in collecting the Lot or not, the Seller shall be liable for all risks and bear all expenses. The Company is not responsible to purchase transportation insurance in general, unless the Seller specifically instructs the Company to do so and bears the insurance premium.