Page 386 - 中国书画（一）

CONDITIONS OF BUSINESS

Chapter I General Provisions interest of any third party, the auction of the Lot shall not violate any relevant laws and regulations;
Article 1 Governing Law (2) the Seller has, to the best of its knowledge, made full and complete disclosure and description to the
This Conditions of Business (hereinafter referred to as the “Conditions”) are made in accordance with the Company with respect to the origin and any fl aw or defect of the Lot without any concealment and
Auction Law of the People’s Republic of China, other relevant laws implemented in the People’s Republic fabrication; and
of China, regulations of the People’s Republic of China and the Articles of Association of the Company (3) the Seller shall indemnify and hold the Company and/or the Buyer from and against any claims,
with reference to international general practices. losses and damages or actions incurred or brought by the actual owner or any third party who

Article 2 Definitions and Interpretation claims to be the actual owner of the Lot as well as all expenses and costs incurred in connection
The terms used in the Conditions shall have the following meanings: therewith, arising out of, or in any way attributable to any breach of the above warranties.
(1) “We/Us/Our/Company” means Zhong Hongxin Auctions Co., Ltd.. Article 9 Reserve
(2) “the Company’s domicile” means “8th Floor of Zhongfang Building, No. 6 Dongzhimen South Street, All Lots are offered subject to a Reserve, unless otherwise marked or explained by the Company.
Dongcheng District, Beijing, China.” People’s Republic of China, and any other registered address The Reserve shall be determined by the Seller and the Company in writing and no modification or
which may be changed subsequently. amendment of the Reserve shall be binding upon the parties unless subject to prior written consent of
(3) “the Seller” means a natural person, legal person or any other organization who consigns the Lot to the other party.
the Company for auction in accordance with the Conditions. Under the Conditions, the Seller shall In no circumstances, shall the Company accept any liability for failure in sale due to bidding lower than
include any of its agents unless otherwise provided hereunder or in a particular context. the Reserve at the auction.
(4) “the Bidder” means a natural person, legal person or any other organization that has full capacity of Article 10 The Company’s Discretion before Auction
civil rights to bid at auction according to provisions of the laws of People’s Republic of China and The Company may decide the followings at the Company’s absolute discretion:
who has gone through the necessary registration and procedural formalities of the Company. The (1) explanation and appraisal of any Lot as produced in the catalogue and/or news media and/or in other
Bidder shall satisfy all provisions with respect to conditions of sale or qualifi cation of the Bidder. ways;
Under the Conditions, the Bidder shall include any of its agents unless otherwise provided hereunder (2) adoption of expert’s opinion or not;
or in a particular context. (3) the arrangement of the order, location, and page size of illustration of the Lot in the Catalogue and
(5) “the Buyer” means the person with the highest bid accepted by the auctioneer. relevant expenses incurred therefore; specifi c means of exhibition/display of the Lot and all relevant
(6) “Lot” means any item(s) owned by the Seller or disposable according to the laws, and consigned to arrangement and expenses incurred therefore.
the Company for auction. (4) unless otherwise agreed by the Seller and the Company, the Company shall at its own discretion
(7) “Auction Date” means the published date on which the auction will formally begin. decide on whether the Lot is appropriate to be auctioned by the Company (i.e. whether to be
(8) “Sale Date” means the date on which the auctioneer confi rms the sale of any Lot in the auction by auctioned fi nally) , as well as the place of auction, the scene of auction, the date of auction, the
dropping his hammer or in any other public manner. conditions of auction and the manner of auction.
(9) “Hammer Price” means the amount of the highest bid which shall indicate the conclusion of the (5) the Company will announce the condition and procedure to deal with the paddle affi xed with number

auction after being confi rmed by the auctioneer dropping the hammer or in any other public manner by the Bidder before the Auction Date, including but not limited to require qualifi cations of the Bidder

indicating the completion of a deal. for the paddle affi xed with number, in accordance with diff erent conditions and manners of auction.
(10) “Proceeds of Sale” means the net amount owed to the Seller from the Hammer Prices after Article 11 Unauctionable Lot
deducting commission pro rata, taxes and all expenses and other amounts owed to the Company After the Seller has signed the consignment auction contract with and delivered the Lot to the Company,
by the Seller. if for any reason the Company believes that the Lot is not suitable for auction, the Seller must collect the
(11) “Purchase Price” means the total amount payable by Buyer for his/her/its bid, including Hammer Lot within thirty days from the date of the Company’s notice being dispatched (fees for the packaging
Price, commission and other expenses payable by the Buyer. charge and cartage shall be paid by the Seller) , the consignment auction contract between the Seller
(12) “Expenses” means charges and expenses including but not limited to expenses with respect to and the Company will cease on the date the Seller collects the Lot. If during the abovementioned period
insurance, making catalogue and other public materials, packaging, transportation and storage, and the Seller fails to collect the Lot, the consignment auction contract will automatically cease. If within
any other expenses pursuant to relevant laws, regulations and provisions hereof. seven days after the ceasing of the consignment auction contract, the Seller does not collect the Lot,
(13) “Reserve” means the lowest selling price of Lot raised by the Seller and confirmed with the the Seller shall pay the Company Storage Fee according to the standard set forth in Article 2 (15) of the
Company in the consignment auction contract. Conditions from eighth day after the ceasing of the consignment auction contract. If the Seller does not
(14)“Reference Price” means the price of the Lot provided in the catalogue or other descriptive materials collect the Lot within ninety days after the ceasing of the consignment auction contract, the Company
and estimated prior to the auction. The Reference Price is subject to possible changes and cannot has right to deal with according to Article 30 of the Conditions.
be deemed as the fi xed sale price, and no legal binding force. Article 12 Suspension of Auction
(15)“Storage Fee” means the fee payable by the Buyer or the Seller under the Conditions relating The Company may suspend any auction at any time under any one of the following situations:
to storage of the Lot, and the current standard of Storage Fee is equal to 0.3‰ of Reserve (if no (1) the Company has the objection to the ownership and authenticity of the Lot;
Reserve, the agreed insurance amount shall be applied) per day. (2) any third party has the objection to the ownership and authenticity of the Lot with undertakings
Article 3 Application Scope to provide relevant evidence accepted by the Company, make security in writing pursuant to the
The Company organizes auctions pursuant to Chinese laws, regulations and policies. The Conditions Company’s provisions and take all legal responsibilities for all legal repercussions and losses due to
shall ensure to be binding upon the Seller, the Bidder, the Buyer and any other concerned parties suspension of auction;
participating in the Company’s auction in relation to the artworks, crafts and other cultural relics (3) the Company has the objection to the explanation of the Seller or the accuracy regarding the Seller’s
presented by the auction activities of the Company. warranty provided in Article 8;
Article 4 Special Notice (4) the Company has any evidence to prove the Seller has already violated or is to violate any term of the
When the auctioneer confi rms the highest bid by dropping his hammer or in any other public manner, Conditions; and
the Bidder with the highest bid shall be the Buyer of the Lot. (5) any other reasonable causes.
The Seller, the Bidder, the Buyer and other concerned parties participating in the auction should read the Article 13 Withdrawal of Lots by the Seller
Conditions carefully and conform to the provisions hereof. All parties shall be liable for their own actions The Seller may withdraw the Lot at any time prior to the Auction Date subject to a written notice stating
at auction and any loss caused by failure to read the Conditions carefully. the reasons. In the case that the catalogue or any other public materials of the Lot have begun printing
Article 5 Exclusion of Liability upon the Seller’s withdrawal, the Seller shall pay an amount equal to 20% of the insurance amount of the
The Company especially declares that the Company cannot guarantee the genuineness or fakery or the Lot and other Expenses in connection therewith. In the case that the catalogue or other public materials
quality of the Lot, and the Company shall not bear the liability for guaranteeing the drawbacks. has not been printed, the Seller shall pay an amount equal to 10% of the insurance amount and other
The Bidder and/or his/her/its agent shall bear the responsibility of carrying out his/her/its own inspection related Expenses.
and investigations as to the nature of the Lot and shall be liable for his/her/its bid. In case of withdrawal of the Lot, the Seller shall take the Lot back within thirty days after receiving the
Chapter II Conditions Concerning the Seller notice sent by the Company. If the Seller does not collect the Lot within the foregoing time limit, the
Article 6 Consignment Procedures Seller shall pay the Company Storage Fee according to the standard set forth in Article 2 (15) of the
When arranging for consignment, the Seller shall hold a valid identity card or passport or other Conditions from eighth day after the ceasing of the contract. If the Seller does not collect the Lot within
certifi cates approved by the competent government of the People’s Republic of China in the case of ninety days after the foregoing time limit, the Company has right to deal with according to Article 30 of
the Seller being a natural person, who must also sign a contract with the Company. A valid certifi cate of the Conditions.
registration, ID of legal representative or other legal authorization document is required in the case of the No dispute or claim arising out of the Seller’s withdrawal of the Lot shall be born by the Company.
Seller being a legal entity or other organization, which must also sign a consignment auction contract Article 14 Automatic Insurance
with the Company. Unless otherwise instructed by the Seller in writing, all Lots will be automatically covered under the
When the Seller consigns the Company for auction, the Company shall be automatically authorized to insurance applied by the Company as soon as the Seller signs the consignment auction contract
exhibit, display, make pictures, illustrations, catalogue, or other video images or publicity materials of the with the Company and delivers the Lot to the Company. The insurance amount shall be based on the
Lot. Reserve agreed by the Seller and the Company in the consignment auction contract (if no Reserve,
Article 7 The Seller’s Agent the insurance amount shall be the one agreed by both parties; if the Reserve is adjusted, the insurance
When arranging for consignment, the Seller’s agent shall submit to the Company a relevant authorization amount shall be adjusted Reserve) .
letter and the Seller and his/her/its agent’s legal identity certifi cate, and enter into a consignment auction The insurance amount is only subject to apply for insurance and claim for compensation after the
contract with the Company. The Seller and his/her/its agent shall hold a valid identity card or passport insurance accident occurrence other than the Company’s warranty or security for the value of the Lot,
or other certifi cates approved by the competent government of the People’s Republic of China in the and does not mean that the Seller can be paid such amount equal to the insurance amount by auction
case of a natural person. A valid certifi cate of registration, ID of legal representative or other legal held by the Company.
authorization documents is required in the case of a legal person or other organization. Article 15 Insurance Premium
The Company reserves the right to examine and amend the above arrangement in any manner the Unless otherwise agreed by the Seller and the Company, the Seller shall pay an insurance premium
Company considers reasonable. according to the following:
Article 8 The Seller’s Warranties (1) In case of unsold of the Lot, the insurance premium payable by the Seller shall be 1% of the Reserve (if
The Seller hereby makes irrevocable warranties to the Company and the Buyer with respect to the no Reserve, the agreed insurance amount shall be applied).
consigned Lot as follows: (2) In case of sold of the Lot, the insurance premium payable by the Seller shall be 1% of the Hammer
(1) the Seller has complete ownership and legal right to dispose of the Lot. Without prejudice to any legal Price.