Chinese Works Of Art: Day 2

Chapter 1. General Provisions Article 1. Establishment of Terms and Conditions The Terms and Conditions hereof apply to the laws of the Republic of Korea and refer to internationally recognized customs. This auction is an open auction hosted by SC Auction which holds the right to make corresponsive amendments to the Terms and Conditions based on the actual situation. Article 2. Range of Application SC Auction organizes and conducts auction activities within the permitted range of the laws, regulations, and policies of the Republic of Korea. All Sellers, Bidders, and other relevant parties that participate in the auction carried out by SC Auction must consent to and comply with the Terms and Conditions. Article 3. Definition of Terms A. ?Auctioneer? refers to SC Auction (hereinafter referred to as ?SC Auction?). B. ?Seller? refers to individuals, corporate bodies, or other organizations that consign Lots to auctions held by SC Auction within the range stipulated in the Terms and Conditions. If not necessary for the denotation of the provisions or clauses of the Terms and Conditions, the ?Consigner? is to includes the proxy of the Seller. C. ?Bidder? refers to individuals, corporate bodies, or other organizations that participate in competitive bids for Lots at auctions held by SC Auction. If not necessary for the denotation of the provisions or clauses of the Terms and Conditions, ?Bidder? includes the proxy of the Bidder. D. ?Buyer? refers to the Bidder who purchases a Lot at the highest price at auctions held by SC Auction. E. ?Lots? refer to the items owned by the Consigner or consigned to SC Auction to sell by law. F. ?Date of Auction? refers to the official date which SC Auction announced to begin an auction. G. ?Date of Auction Deal? refers to the date which the deal for a Lot has been reached at an auction held by SC Auction where the auctioneer strikes the hammer or publicly indicates the closure of the deal in another way. H. ?Hammer Price? refers to the confirmed price at which the Lot is to be presented to the Buyer through the auctioneer?s striking of the hammer or publicly indicating in another way the closure of the deal. I. ?Sales Profit? refers to the amount of payment to be made to the Seller. The Sales Profit is the final amount after deducting the pro rata Premium, tax, Expenses for Each Item, and other payments to be made by the Seller to SC Auction from the Hammer Price. J. ?Purchase Price? is the total due amount for the Buyer to purchase a Lot which includes the Hammer Price, total Premium, and other Expenses for Each Item. K. ?Expenses for Each Item? refer to the expenses incurred by SC Auction producing catalogs and other types of promotional materials for a Lot as well as expenses for packing, shipping and storage, and other receivable expenses based on the relevant laws and rules or regulations stipulated in the Terms and Conditions. L. ?Reserve Price? refers to the minimum Hammer Price at which the Seller and SC Auction have agreed to for a Lot. In principle, the Reserve Price is confidential. M. ?Estimated Price? is the valuation price of a Lot that is shown in the catalog or other description. Fixed at a relatively early point before the Auction Date, the Estimated Price is not the final price and does not carry legal binding force. Article 4. Special Notices When and if a bid is confirmed as the highest bid at an auction held by SC Auction, either by the Auctioneer?s striking of the hammer or publicly indicating in any other way confirming the deal, the bidder immediately becomes the Buyer of the Lot. All Sellers, Bidders, and Buyers taking part in SC Auction?s auctions are to thoroughly review and comply with the Terms and Conditions and are liable for one?s actions at the auction. SC Auction is not liable for accidents or losses due to the failure of thoroughly reviewing the Terms and Conditions. Chapter 2. Regulations on Sellers Article 5. Consignment Procedures When consigning a Lot to SC Auction, individual Sellers must hold a valid identification or passport and sign an auction contract with SC Auction. Corporate bodies or other organizations are to sign a consignment auction agreement with SC Auction based on a valid register, identification of the legal representative, or a legitimate letter of attorney. When consigning a Lot to SC Auction, SC Auction is immediately granted the rights to hold shows and exhibitions and produce catalogs or other types of videos and promotional materials regarding the Lot. Article 6. Seller Proxy When consigning a Lot to a proxy, the Seller is to submit to SC Auction a Certificate of Consignment, provide identification of both the Seller and the proxy, and sign a consignment agreement with SC Auction. Individual Sellers and proxies must hold an identification or passport, and corporate bodies or other organizations are to provide a valid register, identification of the legal representative, or a legitimate letter of attorney. SC Auction holds the right to verify the consignment matters described above through methods SC Auction deems reasonable. Article 7. Seller Warranties To prevent withdrawal of a Lot consigned to and auctioned by SC Auction, the Seller warrants SC Auction and the Buyer as follows: A. The Seller holds full ownership of or disposal/dealing rights for the Lot, does not violate any kind of legitimate rights and benefits of a third party, and does not violate relevant laws and regulations regarding the auction of the Lot. B. The Seller ensures that there are no hidden or false matters by presenting and describing the source and overall flaws of the Lot in detail. C. When and if the actual owner or a third party claiming that one holds the rights for a Lot asks for compensation for damages to SC Auction or the Buyer due to a violation of the Seller?s warranties described above, the Seller is liable for all losses incurred to SC Auction and relevant parties and is to bear all costs and expenses. Article 8. Reserve Price Unless indicated that a Lot does not have a Reserve Price, all lots are offered subject to a reserve. The Reserve Price is determined through consultation between SC Auction and the Seller, and a revision of the Reserve Price does not require the consent of the other party in advance. SC Auction, under any circumstance, is not liable for deals not concluded due to a Lot falling short of the Reserve Price at auctions held by and at SC Auction. Article 9. SC Auction?s Discretion Prior to the Auction SC Auction holds full discretion on the following matters: A. the catalog and descriptions or evaluations regarding the Lot on newspapers or other media channels; B. whether to seek advice from an expert; C. the order and location in which Lots are listed in the catalog as well as the arrangement of the catalog such as the size of the type area, the criteria for collecting expenses, the mode of how the Lots are exhibited, the arrangement of Lots throughout exhibitions, and the criteria for payable expenses for each item; D. deciding whether a Lot is suitable for an auction held by SC Auction. More specifically, whether to offer a Lot at its auction, the location and number of auctions to be held, what the auction date, auction conditions, and auction method will be, unless an alternative agreement has been made. Article 10. Lots Not Offered for Sale When and if SC Auction, for some reason, acknowledges that a Lot is not suitable for its auction after signing an agreement with the Seller for a consignment auction or the Seller consigning a Lot to SC Auction, the Seller must withdraw the Lot within seven days from the date of receiving SC Auction?s notice with the Seller bearing expenses for packing and shipping. The consignment auction agreement between SC Auction and the Seller is immediately terminated by the above-mentioned due date. If the Seller fails to withdraw the Lot within seven days of the termination of the consignment auction agreement, SC Auction holds the right to enforce the provisions of Article 19 hereof. Article 11. Suspension of Auction SC Auction, in any of the following circumstances, may resolve to suspend an auction for a Lot at any time prior to the auction. When and if: A. SC Auction raises objections on the belonging or authenticity of a Lot; B. a third party raises objections on the belonging or authenticity of a Lot, can provide admittable evidence to SC Auction, and has stated in written form that it will take full liability for the legal outcomes and overall losses caused by the suspension of the auction; C. objections are raised regarding the Seller?s description or the Seller?s warranty stipulated in Article 7; D. SC Auction resolves all other rational reasons for suspending an auction. Article 12. Seller?s Withdrawal of Lots The Seller cannot withdraw a Lot from the Date of Auction forth. To withdraw a Lot before the Date of Auction, the Seller is to notify SC Auction in advance and pay the cancellation fee, then suspend the consignment auction agreement under the consent of SC Auction. If the Seller fails to pay SC Auction the cancellation fee, the consigned Lot cannot be withdrawn and the consignment auction agreement will remain valid. Depending on the time the Lot withdrawal was requested, the Seller is to pay SC Auction the cancellation fees as follows: A. Twenty-percent of the Reserve Price if the catalog or other publications have not yet been printed. B. Thirty-percent of the Reserve Price if the catalog or other publications have already been printed. C. Forty-percent of the Reserve Price if the withdrawal request is made within ten days of the auction. D. Fifty-percent of the Reserve Price if the auction exhibition has already commenced. Under the provisions of this Article, the Seller is to immediately collect the Lot upon suspension of the consignment auction agreement and SC Auction is not liable for the storage and insurance of the Lot. The Seller bears all compensation for any dispute or damages caused by the withdrawal of the Lot and SC Auction is not responsible for such matters. Should SC Auction suffer any damages due to such an event, the Seller is liable for all compensation. Article 13. Prohibition of Auctions The Seller is not to take part in competitive bids for the consigned Lot and is not to ask other individuals to take part in competitive bids on their behalf. Upon violation of this Article, the Seller is to take full legal responsibility and compensate all losses for SC Auction caused by such a violation. Article 14. Premium and Expenses Unless an alternative agreement has been made, the Seller consents to SC Auction deducting the Premium and other Expenses for Each Item. Under Article 30 hereof, the Seller also consents to SC Auction collecting from the Buyer the Premium and other Expenses for Each Item for the Hammer Price. Article 15. Payment of Sales Profit If the Buyer has paid SC Auction the full Purchase Price in accordance with the provisions set forth in Article 31 and Article 32, SC Auction pays Sales Profit to the Seller in Korean currency within thirty days from the date of full payment made for the Purchase Price. SC Auction is not responsible for bank charges for making payments and remittances. Article 16. Delay in Payments If the Buyer fails to pay SC Auction the full Purchase Price by the due date stipulated in Article 31 hereof, SC Auction is to pay the Seller the Sales Profit within seven days of the actual date on which the full payment of the Purchase Price has been made by the Buyer, that is, seven days after the Date of Auction Deal. If the Buyer fails to pay the Purchase Price within fourteen days of the Date of Auction Deal, SC Auction will be entitled to take measures in accordance to Article 36 and Article 37 hereof and holds the right to claim damages. Article 17. Cancellation of the Sale If the Buyer fails to pay the Purchase Price in full within fourteen days of the Date of Auction Deal, the Seller holds the right to withdraw the deal once notifying to and receiving consent from SC Auction. SC Auction then notifies the Buyer of the withdrawal of the deal within seven days of receiving the Seller?s notice to withdraw the deal. If the Buyer has already paid the Purchase Price in full or the shipping procedure has been cleared, the notice on the withdrawal of the deal will be immediately discarded. The deal will be valid in accordance with Article 16 hereof, and the Seller must cooperate where necessary and is not to raise any objections. Upon withdrawal of the deal, the Seller must collect, in person, the Lot within seven days of receiving SC Auction?s notice fully bearing the expenses for packing and shipping. If the Seller fails to withdraw the lot by the due date of twenty-one days, SC Auction holds the right to enforce the provisions of Article 19 hereof. Article 18. Invalid Deals If the deal for a Lot is invalid, the Seller must withdraw the Lot, by bearing the expenses for packing and shipping, within seven days from accepting SC Auction?s notice. The consignment auction agreement between SC Auction and the Seller is terminated on the date the Seller collects the Lot. If the Seller fails to withdraw the Lot by the above-mentioned due date, the consignment auction agreement between SC Auction and the Seller is terminated automatically. If the Seller fails to withdraw the Lot within twenty-one days from automatic termination of the consignment auction agreement, SC Auction holds the right to enforce the provisions of Article 19 hereof. Article 19. Delay in Withdrawal of Lots Upon failure to withdraw the Lot by the due date stipulated in the Terms and Conditions, the Seller is to be responsible for all risks and expenses that occur from the due date forth. If the Seller fails to withdraw the lot within twenty-one days since receiving the notice, SC Auction holds the right to dispose of the Lot at its discretion without any additional notice, and the Seller has no right to raise objections. Chapter 3. Regulations on Bidder and Buyer Article 20. Catalogs For the convenience of prospective Bidders and Sellers taking part in an auction held by SC Auction, SC Auction produces a catalog of the Lots for sale briefly describing, with text and photos, the condition of the Lots. The description, Estimated Price, photo, and other types of videos and promotional materials are provided as reference only, may be revised prior to the auction, and do not warrant the authenticity, value, tone, quality of the material, defects, etc. Article 21. Discrepancy of Catalogs The tone, color, cubic effect, form, etc. in catalogs or other exhibitions using other types of photos, video content and promotional materials may differ from the original item due to technical reasons such as printing or filming. In case of such errors, the original item is to be the criteria. The introductions and evaluations provided by SC Auction and its employees or a proxy are an opinion for reference only and does not guarantee a Lot. Article 22. Bidder?s Liability for Observation SC Auction only warrants the header information in the catalog, that is, the text on the first lines in bold. Any other supplementary descriptions or Estimated Prices, and other information provided by an employee of SC Auction, either oral or written, and other promotional materials are for reference only and do not guarantee the authenticity and quality of the Lot, and thus, SC Auction is not held liable for the warranty of the Lot. The Bidder or its proxy should recognize the actual condition of the Lot and bear the legal responsibility for one?s action on bidding for a Lot. Article 23. Bidding Paddle Considering the different auction conditions and methods, SC Auction announces, prior to the Date of Auction, the conditions and order of handling the bidding paddle. The bidding paddle is the only evidence, on-site, proving a Bidder?s participation in a competitive bid. Bidders must safely keep the bidding paddle which is not subject to be used by other individuals. In the event of loss, the Bidder should immediately notify SC Auction in written form as a necessary formality. Article 24. Bidding Deposit New Bidders to SC Auction are obliged to pay a deposit upon bidding registration. The bidding deposit of five-million Korean won should be paid in cash or remitted to SC Auction. If the Bidder fails to purchase a Lot, the full amount of the deposit will be returned to the Bidder with no interest within fourteen days of closing of the auction. If the Bidder becomes a Buyer, the deposit is used to pay for the Purchase Price and the balance will be returned to the Bidder with no interest within fourteen days of closing the auction. Article 25. SC Auction?s Right of Choice SC Auction has the right to reject the participation of an individual in an auction, entering an exhibition or auction site, or from certain on-site activities such as photo-taking, voice or video recording, etc. Article 26. Written and Phone Bids Bidders must be present at the auction site. If one cannot attend the auction in person, the Bidder can register for written/phone bids and consign the competitive bid to an SC Auction employee. Bidders who register for written/phone bids must be well-acquainted with the information on the registration form in addition to the Terms and Conditions and are deemed to have consented to the details upon submitting the registration form to SC Auction. SC Auction holds the right to determine whether the above-mentioned registration for consignment is to be accepted. Bidders who registered for written bids must go through the written bid registration formalities within the stipulated hours (please refer to SC Auction?s Bidding Registration Form), and pay the bidding deposit in accordance with Article 24 of the Terms and Conditions. To withdraw from written/phone bids, the Bidder must notify SC Auction at least two hours before the auction. Article 27. Online Bids SC Auction offers an internet-based online bidding service. Once joining Live Auctioneers as a member, Bidders can use the online bidding service offered through the website to participate in auctions by SC Auction. A 5% purchase premium is added for internet bids via Live Auctioneers. The time difference in the advancement of the auction is primarily based on the order and speed of that on-site, and SC Auction is not responsible for bids not recognized due to a time difference from the internet. Article 28. Auctioneer?s Discretion The Auctioneer, on behalf of SC Auction, holds the right to raise or lower the auction price, refuse a competitive bid, or re-offer a Lot in the event of a dispute. Article 29. Video Screens and Currency Boards For the convenience of the Bidder, SC Auction may use video screens or other types of boards throughout the auction, and the information is for reference only. The amount, Lot number, photos of the Lots, or the amount in foreign currency presented on the video screens or other types of boards may all have errors, and SC Auction is not liable for any of the losses caused by such errors. Article 30. Conclusion of Auction Deal The competitive bid of the Bidder is successful when the Auctioneer strikes the hammer acknowledging the highest bid or in any other way to publicly state the conclusion of the purchase agreement whereupon the Bidder immediately becomes the Buyer of the Lot. Article 31. Premium and Expenses Upon a successful bid, the Bidder immediately becomes the Buyer of the Lot. The Buyer is liable to pay the appropriate Premium as well as other Expenses for Each Item in the Lot. The Buyer also consents to SC Auction collecting from the Seller the Premium and other Expenses for Each Item in accordance with Article 14 of the Terms and Conditions. Unless specifically notified before the auction, the Premium for the purchased Lots are as follows: A. Twenty percent for Lots sold at 50,000,000 Korean won or less; B. Thirteen-point-nine percent for Lots sold at a range of 500,000,000 Korean won or more and 5,000,000,000 Korean won or less; C. Six-point-nine percent for Lots sold at 5,000,000,000 Korean won or more. Article 32. Payment Schedule The Buyer is liable to pay SC Auction the Purchase Price in full within seven days from the Date of Auction Deal. The Buyer bears expenses for packing, shipping, transport insurance, etc. Article 33. Payment Currencies Once the auction deal is concluded, payment for the Purchase Price can be made in Korean won only, either in cash, by credit card, or other cards issued by banks, and account transfers. When paying by credit card or other cards issued by banks, the Buyer pays for the necessary additional charges. Buyers who wish to pay with account transfers should contact SC Auction for the necessary bank information, and the Buyer is to bear the transfer charges. Article 34. Transfer of Ownership The Buyer immediately obtains ownership of the Lot upon payment of the Purchase Price in full. Article 35. Collection of Lots The Lot should be collected by the Buyer from SC Auction or another location designated by SC Auction within seven days from fully paying the Purchase Price. If the Buyer fails to collect the Lot by the due date, the Buyer bears all expenses for the storage, shipping, and insurance of the Lot from the due date forth and the Buyer is liable for all matters related to the purchased Lot. If the Lot remains in storage by SC Auction or another proxy, neither SC Auction nor the proxy is responsible for the loss, damage, or destruction of the Lot and the Buyer is liable for all relevant matters. Article 36. Packing and Shipping Upon request, an employee of SC Auction can pack and administer the purchased Lot on behalf of the Buyer. This is a paid service offered by SC Auction to the Buyer and SC Auction can determine whether or not to offer the service depending on the Lot and other considerable circumstances. The Buyer is responsible for all expenses and losses caused by the service. Article 37. Remedies for Non-Payment If the Buyer fails to pay the given amount in accordance with the Terms and Conditions, SC Auction holds the right to take one or more of the following measures. A. If the Buyer fails to pay the Purchase Price within the hours stipulated in the Terms and Conditions after the auction deal has been concluded, the bidding deposit or down payment will not be returned and the Buyer is to bear the responsibilities stipulated in the Terms and Conditions. B. If the Buyer fails to pay the Purchase Price within thirty days from the Date of Auction Deal, SC Auction can charge interest from the thirty-first day since closing of the auction deal. C. If the Buyer fails to pay the Purchase Price in full within sixty days from the closing of the auction deal, SC Auction holds the right to withdraw the auction deal or to consent to the Seller?s request to withdraw the deal by taking into account the situation. SC Auction holds the right to collect all losses caused by the deal or the cancellation of other deals. Article 38. Remedies for Delayed Collection of Lots If the Buyer fails to collect the purchased Lot within the hours stipulated in Article 34 hereof, SC Auction holds the right to take one or more of the following measures: A. The Lot will be stored at SC Auction or in another location at the Buyer?s risk and expense. The Buyer can collect the Lot only after paying the Purchase Price in full. B. Upon failure to collect the Lot by the due date stipulated in the Terms and Conditions, the Buyer bears full responsibility for all risks and costs that occur after the due date. If the Buyer fails to collect the Lot within thirty days from the Date of Auction Deal, SC Auction holds the right to publicly sell the Lot by auction or through other methods and conditions deemed appropriate. All losses and expenses will be deducted from the amount acquired through the disposal of the Lot. The balance, if any, will be provided to the Buyer and no interest will be applied to the balance. Chapter 4. Miscellaneous Article 39. Liability of Confidentiality SC Auction is obliged to maintain confidentiality for the Seller and Buyer, and protect and ensure that the just rights and benefits of the Seller, Bidder, Buyer, and SC Auction are not infringed upon in accordance with the laws of the Republic of Korea and the Terms and Conditions. Article 40. Appraisal When and if SC Auction recognizes a need, the Lots may be subject for appraisal. SC Auction holds the right to make changes to or cancel the consignment auction agreement if the appraisal results do not adhere to the conditions stated in the consignment auction agreement or the intentions of the auction. Article 41. Copyrights The Seller grants the right to SC Auction to take photos and hold exhibitions using the photos, and to produce catalogs or other types of video content or promotional materials regarding the consigned items. SC Auction holds the copyright for the above-mentioned photos, exhibitions using the photos, catalogs or other types of video content or promotional materials as well as the right to use them according to law. Article 42. Notices Both the Bidder and Seller are to provide SC Auction with a fixed and valid phone number and the means of contact on the bidding registration application form or consignment auction agreement, and to inform SC Auction by written notice the changes, if any. Notices mentioned in the Terms and Conditions refer only to written notices sent by mail or fax. As for mailed notices, once SC Auction hands over the notice to the post office, the notice is deemed to have been sent by SC Auction and the recipient is deemed to have been notified according to the normal mail delivery procedures. As for fax notices, the day the fax has been sent is the day the recipient is deemed to have received the notice. Article 43. Severability Even if an authority finds any provision or part of the Terms and Conditions invalid, unlawful or unenforceable for any reason, the remaining provisions or parts are to remain effective and are subject to be complied with and fulfilled by all parties. Article 44. Amendment Rights SC Auction may amend the Terms and Conditions and holds the right to amend the Terms and Conditions based on the actual situation as needed. The amended Terms and Conditions are automatically applied from the day the amendment has been made. Upon amendment of the Terms and Conditions, SC Auction is to give notice of the amendment through a legitimately recognized method according to the law and ensure each relevant party to take notice. SC Auction has the right not send out additional notices. Article 45. Jurisdiction Any lawsuits that arise out of disputes in connection with SC Auction, the Seller, or the Buyer are to be submitted to the jurisdiction of the Daejeon District Court. Article 46. Governing Law Commercial litigations filed against SC Auction, the Seller, or the Buyer are to apply the laws of the Republic of Korea. Article 47. Implementation The Terms and Conditions take effect from April 1, 2013. Article 48. Interpretation Rights The interpretation of the Terms and Conditions are vested in SC Auction.