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 Definitions and Interpretation
The terms used in these Conditions shall have the
following meanings:
"Company" means Beijing Johan's Auctions Co., Ltd.
"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
qualifications 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.
"Buyer" means the highest Bidder buying the Lot at an
auction held by the Company.
"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.
"Lot" means any item(s) deposited with the Company
for sale at auction in accordance with law.
"Auction Date" means, in respect of an auction, the
date announced by the Company on which the auction
will officially begin. In the case of any discrepancy
between the actual date of auction and the date
announced, the actual date of auction shall prevail.
"Sale Date" means, in respect of an auction held by the
Company, the date on which the auctioneer confirms
the sale of any lot by striking his hammer or in any
other public manner.
"Hammer Price" means the amount of the highest bid
accepted by the auctioneer in relation to a Lot.
"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.
"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.
"Expenses" means costs and charges, including but
not limited to those with respect to Lot insurance,
catalogue and other advertisements, packaging,
transportation, storage, and any other expenses
incurred pursuant to relevant laws, regulations and
provisions hereof.
"Reserve" means the minimum (confidential) price at
which the Seller agrees to sell the Lot.
"Estimate" 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 Estimate can not be deemed as the
fixed 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 benefit of and be binding upon
CONDITIONS OF BUSINESS
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 satisfied
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 confirms 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 confirmation 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 the Company, 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 preannouncement of Auctioneer at auction. Any
changes in these Conditions so made shall supersede
all prior agreements.
Chapter II Commitment
Article 6 Commitment of the Company
The Company is established under the laws of the
People's Republic of China. Honesty and good faith are
basic principles underlying the Company's operations.
The Company undertakes that it will at any auction and
other related activities treat all Sellers, Bidders, Buyers
and other relevant parties with honesty and good faith.
With respect to the following aspects of any auction,
the Company undertakes that:
the Company will store the Lot in a reasonably
prudential manner pursuant to these Conditions and
prevailing practices of the auction industry and return
to the Seller the unauctionable or unsold Lot pursuant
to these Conditions;
the Company will examine the Lot in a reasonably
prudential manner and state its opinion in the catalogue
or other relevant documents. However, in no way shall
any representation or opinion of the Company on any
Lot constitute any warranty or guarantee of the quality,
authenticity, age, author or any other aspect of the Lot;
the Company undertakes that the Lot bought by the
Buyer will be stored in a proper manner pursuant to
these Conditions after the auction. The Company further
undertakes to assume the liability of compensating the
Buyer for any losses and damages of the Lot, to the
extent of the Purchase Price already paid by the Buyer,
before the aforementioned risks have been transferred
to the Buyer under these Conditions;
notwithstanding the risks of losses or damages of
the Lot have been transferred to the Seller or Buyer
hereunder, the Lot not taken back by the Seller or
taken away by the Buyer within the specified time limit
will still be properly stored by the Company in good
faith. However, the aforementioned good deed of the
Company does not constitute warranty or guarantee to
the Seller/Buyer that the Company will undertake any
obligation to preserve the Lot, and any loss or damage
of the Lot and all storage costs paid by the Company
shall be subject to pertinent provisions hereof set forth
below; and
the Company will respect and under no circumstance
breach the copyright of the Lot owned by the Seller
or Buyer, and will comply with applicable laws and
these Conditions when producing and using pictures,
illustrations, catalogues, or other forms of images
of the Lot. However, the Company will under no
circumstances give any opinion or warranty in relation
to the ownership and/or restrictions of the copyright of
the Lot.
C h a p t e r I I I C o n d i t i o n s M a i n l y
Concern-ing the Seller
Article 7 Consignment Procedures
When the Company acts as an agent of the Seller to
auction its property:
The Seller as a natural person shall hold a valid identity
certificate and enter into a consignment contract with
the Company;
The Seller as a legal person or any other organization
shall hold a valid certificate of registration, identity
certificate of legal representative, power of attorney
and identity certificate of agent and enter into a
consignment contract with the Company;
When the Seller enters into a consignment contract
with the Company, the Company shall be automatically
authorized to produce pictures, illustrations, catalogue,
or other forms of images of the Lot.
Article 8 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:
If the agent is a natural person, valid identity certificate;
If the agent is a legal person or any other organization,
valid certificates of registration, identity certificate of
legal representative, power of attorney issued by such
legal person or any other organization to the agent
(natural person) thereof and the identity certificate of
the agent (natural person); and
