Seoul Auction terms
Terms and Conditions of Auction
Article 1 Purpose
The purpose of this terms and conditions (the "Agreement") is to set forth procedures and conditions for auctions conducted and held by Seoul Auction (the "Company") and rights and obligations of parties involved in such auction.
Article 2 Definition
1. "Consignor" is a person who desires to sell his or her art piece (s) through the means of the
auction of the Company.
2. "Bidder" is a person who participates in the Company's auction and desires to make a
successful bid for an art piece by participating in the Company's auction.
3. "Successful Bidder" is a person who participates in the Company's auction and has a
successful bid on an art piece.
4. "Opening Price" is the starting bidding price.
5. "Hammer Price" is the price of the highest bid, finalized by the fall of hammer and being called
out his or her paddle number by the auctioneer.
6. "Purchasing Price" is the sum of hammer price, a buyer's premium, and value added tax
(VAT).
7. "Reserve Price" is the minimum selling price that a Consignor and the Company has
previously agreed in principle not to be disclosed.
8. "Estimate Price" is the conjectured value of the articles sold by auction by the Company.
9. "Member" is a person who provides personal information to register as a member of the Company. Types of memberships are categorized into a regular (membership) and an associate (membership).
"User" is a Consignor, a Bidder, a Successful Bidder, or a Member that either participates in
the Company's auction, or receives with the Company's services.
10. The term of this Agreement includes non-business days except when specified. Non-
business days shall be based on the business days of financial institutions.
Article 3 Members
1. By paying a designated amount of annual membership fee and registering with the Company, a person may be eligible to become a regular Member. The annual membership fees shall not be refunded in any case.
2. The Company shall issue membership cards to each regular Member.
3. Regular Members shall be provided with catalogues and various information online, and shall
be qualified to make a bid in an auction operated by the Company.
4. Associate Members shall be free Members, who shall be provided with all various information online and catalogues based on the frequency of the usage of the Company's service, provided however, such associate Members shall not be qualified to make a bid in an auction. ? In the event that a Member falls under one of the following circumstances, the Company may
restrict or suspend such Member's membership:
1) Entry of false information in the Membership application
2) When a Member fails to carry out an obligation, such as the payment for a successful bid,
and other matters relating to an auction
3) When a Member interferes in the participation of others, spreads false information, leases
his/her membership, and disturbs the order of an auction
4) When a Member engages in an act that violates the law relating to the auction, this
Agreement and/or acts in a way that is against the social order.
Article 4 Consignment of Art Pieces and the Settlement of the Net Sale Proceeds
1. A Consignor may consign an art piece (his/her properties) provided however, under each of
the following circumstances the Company may restrict the registration: 1) When a dispute over the authenticity of an art piece may be raised;
2) When an art piece does not meet the characteristics of the auction, or when it is not an
appropriate item for sale at the auction
3) When a Consignor and the Company fail to agree on an art piece's Reserve Price
2. When it is determined that a special appraisal is necessary, a Consignor shall pay for the special appraisal consignment processing fee in accordance with the Company's policy. (Rules on the Special Appraisal Fee)
3. A Consignor shall have responsibilities and obligations for each of the following statements: 1) A Consignor shall have the authority to dispose of the art pieces being consigned by such
Consignor.
2) A Consignor shall warrant that a third party has no right of a lien, the right of pledge, and
other rights in any way regarding the consigned art pieces.
3) Concurrently with a successful bid, a Consignor shall be obligated to guarantee the transfer
of ownership of the consigned item to a purchaser.
4) When the Company decides not to sell a consigned item(s) at auction, the Company shall notify the Consignor, and the Consignor shall pick up the consigned item(s) within 5 days of the notice. A Consignor shall not claim to the Company any damages and loss of the art pieces occurred during the delay of such pick-up. After 7 days, a storage charge shall apply under the Company's policy.
5) A Consignor shall warrant that the consigned item(s) do not infringe on the Act on Cultural Properties Protection. When consigned item(s) turns out to be a cultural asset, illegally excavated article, a stolen good, and/or any other unlawful article(s), the Consignor shall take the civil and criminal responsibilities, and he/she shall return the entire net sale proceeds immediately together with the compensation for the Company's loss that has been caused as a result.
4. Once a contract of consignment has been entered into, a Consignor may not withdraw the consignment. In case the withdrawal becomes unavoidable, a Consignor shall pay the Company the sum of a seller's commission and a buyer's premium as a penalty within 10 days
of a notice of withdrawal (The commission shall be determined Article 9 of this Agreement based on the assumption that the Hammer Price is the average Estimate Prices.) In addition, if a loss is caused by the Consignor's withdrawal of consignment, the Company may claim damages separately from the policy regarding the penalty mentioned above.
5. A Consignor shall collect unsold item(s) within 15 days from the date of an auction. The Company shall not be responsible for any damage caused after 15 days and a Consignor shall pay a storage fee according to the Company's policy.
6. When consigned item(s) is sold, the Company shall pay the net sale proceeds after deducting seller's commission on consignment and shipping/handling expenses within 15 days from the date of the auction (within 25 days when the hammer price is higher than or equal to three hundred million Korean won), provided however, when the buyer fails to pay the Hammer Price, the payment of net sale proceeds may be deferred. In the event the date of payment for the net sale proceeds is a non-business day, such payment date may be delayed up to 2 business days.
Article 5 Proceeding of an Auction
1. The Company shall hold an exhibition preview for perspective Bidders to examine auction items
2. An auction starts in the order of lot numbers printed in the catalogue. However, the Company may withdraw the scheduled auction items without a prior notice, and may divide any lot into several items at auction, or may put several items in one collection at auction.
3. Prior to the operation of auction, the Company and a Consignor shall decide on Reserve Price, which shall be the minimum Hammer Price of items to be sold. However, with an agreement with a Consignor, Reserve Price may be earmarked as an Opening Price.
4. In order to keep the Reserve Price agreed with a Consignor, the auctioneer may place a bid or series of bids until the Reserve Price is reached. At this time, the bidding by auctioneer may proceed without indication and whether or not other Bidders are present. If a bid does not reach a Reserve Price, the bid is not valid.
5. The price asked for shall be entirely at the discretion of the auctioneer and the auctioneer shall present the bidding increments in advance during the auction. A Bidder may verbally call for an arbitrary price, which an auctioneer may refuse to accept at his/her discretion. The Opening Price may not be restricted by Reserve Price and may be either settled on an amount lower or higher than Reserve Price.
6. As reference of the auction items, the Company shall provide both low and high Estimate Prices to the Bidders. An Estimated Price shall be simply to serve as a good reference for the auction and shall not be a price that the Company takes responsibility for and shall be also irrelevant to the Hammer Price. Furthermore, the Company shall not be responsible for such Estimate Prices being used by the public outside.
7. A Successful Bidder and Hammer Price shall be decided by calling the highest bidding price at least once, a fall of the auctioneer's hammer and a call on the paddle number of the highest Bidder.
8. The auctioneer may decide on a valid Bidder or reoffer and resell at auction the disputed item when there is a dispute among Bidders, or when a validity of a bid is questionable. When a Successful Bidder is declared and an auctioneer begins on the auction of the next item, no one may make an objection to the previous auction.
Article 6 Bid and Successful Bid
1. In the auction, a Member or a person who has been entrusted by the Company's Member may make a bid.
2. There are different methods of bidding: bidding in person, written bid, and telephone bid.
3. To make a bid in person, a Bidder shall complete a registration form required by the Company, and shall be issued with a paddle. Member, who is granted with a paddle, shall be present in the auction room and declare his/her intention to bid for the price offered by raising up the paddle.
4. According to a set form of the Company, a Member may participate in bidding by either written bid or telephone bid. When the progress of the Company's auction is broadcasted live on television or internet, a Member may bid on the telephone. However, it is necessary to state his/ her intention of using those methods of bidding at least one day prior to the sale.
5. In case there is a Bidder who has suggested a price which is higher than Reserve Price, the successful bid goes to a Bidder who has suggested the highest bid among the Bidders.
6. In the event a bid in person and written bid make a bid on the same price, written bid shall take precedence and be successful. In the event of identical written bids, the earliest received shall take precedence and be successful.
7. A Successful Bidder may not export or take out abroad the items knocked down if it is a cultural asset or remain. (Please be aware that it is a violation of the Act on Cultural Properties Protection.)
8. A Consignor may not bid on the items that he/she has consigned.
Article 7 Limitations on Rights and Responsibilities of the Company
1. Under unavoidable circumstances, the Company may make changes to the previously notified auction date, time and place.
2. The Company may check on the name and identity of the person who wishes to participate in a preview and may request proof of identity. The Company has the authority to refuse admission to a preview of the person who wishes to enter.
3. For the printed materials and the Company's website, the Company may use the items which have arrived at consignment agreements for the purpose of the Company.
4. If there is a dispute over the authenticity and illegal transaction of the articles, and other related happenings occur, the Company may withdraw the consigned items, and may cancel the bid after it has been sold in the auction. In such event, the Company shall not be responsible to the Consignor and the Successful Bidder for any damages except for restoration to the original state.
5. Even though the Company has accepted the request for written bid or telephone bid, but the bid was not placed in the auction due to any mistake or for any other reason(s), the Company shall not take responsibility unless it was caused by the Company's intentional or grossly negligent conducts.
Article 8 Bidder's Obligations
1. Name of the artists, title of work of art, medium, size, provenance, etc. described on the catalogue are merely the Company's suggestion, not an absolute fact.
2. The Company exhibits the items to be sold "as it is." A Bidder shall do thorough research on the desired item(s) before auction. The Company does not provide any warranty and responsibility for the description and images in relation to conditions and characteristics of auction items provided by the Company except as provided under Article 13. A Bidder shall check whether there is any damage or restoration, mistakes and omission on the catalogue description, and discrepancy between the image and the real work, and shall participate in the auction under his/her own judgment and responsibility. The Company progresses on the auction under the premise that the Bidders have carried out this obligation faithfully.
Article 9 Commission
1. (Seller's Commission)
The seller's commission shall be 10% (excluding VAT) of the Hammer Price.
2. (Transfer Tax)
There must be a transfer tax imposed on a profit for the transferred calligraphy, painting and antique pieces. This transfer tax will be applied for the pieces' sale prices more than 60 million won, except for the ones by living Korean artists when the transfer happens. The tax rate is 20% of the margin from transfer, and if the purchasing price has not been clearly marked, 80% of sale prices (in case of the piece has been possessed more than 10 years, 90%) will be approved as for the necessary expenses. This transfer tax will be objected for the calligraphies, paintings and antiques which referred below.
The calligraphies, paintings and antiques relevant to those clauses. Paintings, drawings and pastel pieces (only for the hands drawn pieces, exclude the designs and decorative works), collage pieces and similar decorated plates Original prints, pressed pictures and lithography Antique (created more than 100 years ago) Other than those related to the first clause, the calligraphies, paintings and antique which has an equal historical and artistic value and after consultation by the minister of the Ministry of Strategy and Finance and the minister of Culture, Sports and Tourism then determined through the Ministry of Strategy and Finance's ordinance
3. (Buyer's Premium)
Buyer's Premium shall be 15% (excluding VAT) of the Hammer Price.
Article 10 Payments of the Purchasing Price and Delivery of Art Pieces
1. A Successful Bidder shall make full payments, including the amount of the Hammer Price, buyer's premium and any applicable taxes within 7 days after the sale (within 21 days if the Hammer Price is higher than or equal to KRW 300,000,000), provided however, when the Hammer Price is higher than or equal to KRW 300,000,000, the purchaser shall prepay 30% of its total Purchasing Price within 7 days. If the payment date is a non-business day, the following day shall be a due date for the payment.
2. In case the Successful Bidder fails to make full payments of Purchasing Price within 7 days after the sale (within 21 days if the Hammer Price is higher than or equal to KRW 300,000,000), the Company may levy a certain amount of indemnities for the days of delay according to the Company policy.
3. A Successful Bidder may not withdraw the successful bid and when a withdrawal is unavoidable, he/she shall report the intention of withdrawal in writing within 7 days after the sale, and pay 30% of the Hammer Price as a penalty within 7 days after the sale. In addition, the stipulation above does not affect the claim of both the Company and the Consignor for compensation of damages.
4. If a Successful Bidder does not make a declaration of intention within 7 days after the sale, the Company will consider it as not having the intention to purchase the auction items and may carry out the following measures:
1) In case a Successful Bidder fails to make a payment, the Company may cancel the sale and resell the property publicly or privately. In this case, the Successful Bidder shall pay 30% of Hammer Price as a penalty for breach of promise under Article 10 (3). The penalty above does not affect the right to claim by both the Company and the Consignor for compensation of damages.
2) The Company may expose personal information on a Successful Bidder to a Consignor to the extent necessary for a Consignor to file a lawsuit for compensation of damages.
5. The payment of the Purchasing Price may be made by bank transfer to the designated bank account, a bank check, and cash. (The Company's bank account number: 1081-500-700549 at Woori Bank)
6. With an agreement with the Company prior to bidding, a Successful Bidder may make payments in installments for the purchased items.
7. A Successful Bidder shall collect the purchased items within 7 days after a full payment of Purchasing Price. When there is a delay in picking up the items, he/she shall pay for a storage charge under the Company's stipulations. In case the Successful Bidder fails to pick up the items after 21 days have passed since the full payment, the Company does not accept liability for loss or damages to the items.
Article 11 Sale after the Auction
1. If a Consignor has not expressed an opposition at the time of the consignment of his/her properties, the Company shall assume that a Consignor has agreed on the terms that when the consigned items have failed to sell at the auction, the Company shall take custody of the items for one week in order to submit them for sale after the auction ("After-Sale'). (However, it shall be noted that not all items that have failed to sell at the auction are submitted for After- Sale, but whether or not an item shall be submitted for After-Sale is decided fundamentally by
the Company unless there is a clear statement of request by a Consignor.)
2. After-Sale is operated by written bids, and the closing time for bidding is 1 PM of a day after 5 business days from the sale.
3. The After-Sale shall be also governed by this Agreement.
Article 12 Shipping and Insurance
1. (Shipping)
At the responsibilities and expenses of a Consignor or a buyer, the Company may make arrangement of shipping of items and insurance subscription in case a Consignor or a buyer wishes for such delivery of properties.
2. (Insurance)
A Consignor shall present an insurance policy satisfactory to the Company effective from the delivery of auction items, either until the Company discontinues the custody/management of the item or within 50 days from the scheduled auction date. At the responsibility and expense of the Consignor, the Company may subscribe to insurance on the Consignor's behalf if the consigner wishes
Article 13 Warranty and Restoration to the Original State
1. With respect to the auction items, the Company, as an intermediary, only warrants the boldly printed headlines in the first line of the catalogue. Other supplemental explanations or estimated prices printed in the catalogue and other contents verbally expressed or in writing by staff of the Company shall be solely reference materials, not contents of warranty.
2. The Company shall issue a letter of warranty within the limits of the warranty mentioned in the above paragraph at purchaser's request.
3. As an intermediary, the warranty period of the Company shall be 3 years from the date of the sale. When the warranty shall be proved wrong during this term, the Company shall cancel the sale and shall refund the Hammer Price and buyer's premium paid for the lot, provided however, this shall occur when the buyer strictly satisfies the following conditions:
1) Shall a buyer raise a question on the contents of the warranty by the Company; he/she shall present the auction sale date(s) and lot number(s) of the corresponding item(s), and the convincing ground for such question in writing when making a claim.
2) The buyer shall give written notice of claim to the Company within 3 months from the initial doubt.
3) The buyer shall return the corresponding item(s) to the Company in the same conditions as at the time of the sale.
4. In case there is a discrepancy on the grounds presented between the buyer and the Company, the parties may request opinions in writing from two experts of the related field in order to confirm the authenticity of the corresponding item(s) to the buyer. The expert shall be the person confirmed both by the buyer and the Company. The Company may seek advice from an expert at its cost.
5. Limitation on Warranty Responsibilities Each of the following shall be excluded from the warranty:
1) In case the opinion(s) on the articles at the date of the sale was an expert's general opinion, but the opinion has been modified afterwards, or there is a conflict in opinions,
2) In case the catalogue description or saleroom notice indicated that there were the possibilities of dissenting opinion(s) from scholar(s) or group of experts,
3) In case it is proven that the details under the warranty are wrong either by a method that was not generally used, one that was unreasonably expensive, or one to carry out destructive analysis at the date of the sale.
6. In case the Company becomes responsible under the warranty; the Consignor of the corresponding item(s) also has the obligation to restore the item(s) to the original state.
7. (Disapproval of Transfer) On the list of warranty, the contents under the warranty shall not be transferred to a third party. Namely, the contents under the warranty shall apply only to the original buyer of the lot. However, if corresponding item(s) has been inherited because the original buyer died within 3 years, details under the warranty are transferred to the inheritor. ? (Limitations on the Responsibility of Warranty) The Company's responsibility of a warranty does not exceed the amount that a buyer paid in actuality to the Company. Namely, the Company does not pay for the interest or loss occurred as a result of the change of currency value.
Article 14 Others Including Amendment to this Agreement
1. The Company shall post this Agreement on its website and shall insert it in catalogues, official documents of pick-up and delivery, and consignment agreements in a place where Users can easily find.
2. The Company shall explain important parts of this Agreement when necessary in order to prevent Users from misunderstanding the contents of these provisions.
3. To the extent permitted under the Act on Standardized Contracts and relevant laws, the Company may amend the provisions of this Agreement.
4. In case the Company makes an amendment, it shall post on the first page of the Company's website a notification to compare and clearly state the previous conditions and the revised conditions from 7 days prior to the effective date until one day prior to the effective date of the amendment.
Article 15 Jurisdiction and Governing Law
1. The Seoul Central District Court shall have jurisdiction to hear any dispute arising from the commercial transaction between the Company and a User.
2. The laws of the Republic of Korea shall be the applicable law for any suit relating to commercial transaction between the Company and a User.
Terms and Conditions of Auction
Article 1 Purpose
The purpose of this terms and conditions (the "Agreement") is to set forth procedures and conditions for auctions conducted and held by Seoul Auction (the "Company") and rights and obligations of parties involved in such auction. Article 2 Definition
1. "Consignor" is a person who desires to sell his or her art piece (s) through the means of the auction of the Company.
2. "Bidder" is a person who participates in the Company's auction and desires to make a successful bid for an art piece by participating in the Company's auction.
3. "Successful Bidder" is a person who participates in the Company's auction and has a successful bid on an art piece.
4. "Opening Price" is the starting bidding price.
5. "Hammer Price" is the price of the highest bid, finalized by the fall of hammer and being called out his or her paddle number by the auctioneer.
6. "Purchasing Price" is the sum of hammer price, a buyer's premium, and value added tax(VAT).
7. "Reserve Price" is the minimum selling price that a Consignor and the Company has previously agreed in principle not to be disclosed.
8. "Estimate Price" is the conjectured value of the articles sold by auction by the Company.
9. "Member" is a person who provides personal information to register as a member of the Company. Types of memberships are categorized into a regular (membership) and an associate (membership).
"User" is a Consignor, a Bidder, a Successful Bidder, or a Member that either participates in the Company's auction, or receives with the Company's services.
10. The term of this Agreement includes non-business days except when specified. Non-business days shall be based on the business days of financial institutions.
Article 3 Members
1. By paying a designated amount of annual membership fee and registering with the Company, a person may be eligible to become a regular Member. The annual membership fees shall not be refunded in any case.
2. The Company shall issue membership cards to each regular Member.
3. Regular Members shall be provided with catalogues and various information online, and shall be qualified to make a bid in an auction operated by the Company.
4. Associate Members shall be free Members, who shall be provided with all various information online and catalogues based on the frequency of the usage of the Company's service, provided however, such associate Members shall not be qualified to make a bid in an auction. ? In the event that a Member falls under one of the following circumstances, the Company may
restrict or suspend such Member's membership:
1) Entry of false information in the Membership application
2) When a Member fails to carry out an obligation, such as the payment for a successful bid, and other matters relating to an auction
3) When a Member interferes in the participation of others, spreads false information, leases his/her membership, and disturbs the order of an auction
4) When a Member engages in an act that violates the law relating to the auction, this Agreement and/or acts in a way that is against the social order.
Article 4 Consignment of Art Pieces and the Settlement of the Net Sale Proceeds
1. A Consignor may consign an art piece (his/her properties) provided however, under each of the following circumstances the Company may restrict the registration: 1) When a dispute over the authenticity of an art piece may be raised;
2) When an art piece does not meet the characteristics of the auction, or when it is not an appropriate item for sale at the auction
3) When a Consignor and the Company fail to agree on an art piece's Reserve Price
2. When it is determined that a special appraisal is necessary, a Consignor shall pay for the special appraisal consignment processing fee in accordance with the Company's policy. (Rules on the Special Appraisal Fee)
3. A Consignor shall have responsibilities and obligations for each of the following statements: 1) A Consignor shall have the authority to dispose of the art pieces being consigned by such Consignor.
2) A Consignor shall warrant that a third party has no right of a lien, the right of pledge, and other rights in any way regarding the consigned art pieces.
3) Concurrently with a successful bid, a Consignor shall be obligated to guarantee the transfer of ownership of the consigned item to a purchaser.
4) When the Company decides not to sell a consigned item(s) at auction, the Company shall notify the Consignor, and the Consignor shall pick up the consigned item(s) within 5 days of the notice. A Consignor shall not claim to the Company any damages and loss of the art pieces occurred during the delay of such pick-up. After 7 days, a storage charge shall apply under the Company's policy.
5) A Consignor shall warrant that the consigned item(s) do not infringe on the Act on Cultural Properties Protection. When consigned item(s) turns out to be a cultural asset, illegally excavated article, a stolen good, and/or any other unlawful article(s), the Consignor shall take the civil and criminal responsibilities, and he/she shall return the entire net sale proceeds immediately together with the compensation for the Company's loss that has been caused as a result.
4. Once a contract of consignment has been entered into, a Consignor may not withdraw the consignment. In case the withdrawal becomes unavoidable, a Consignor shall pay the Company the sum of a seller's commission and a buyer's premium as a penalty within 10 days
of a notice of withdrawal (The commission shall be determined Article 9 of this Agreement based on the assumption that the Hammer Price is the average Estimate Prices.) In addition, if a loss is caused by the Consignor's withdrawal of consignment, the Company may claim damages separately from the policy regarding the penalty mentioned above.
5. A Consignor shall collect unsold item(s) within 15 days from the date of an auction. The Company shall not be responsible for any damage caused after 15 days and a Consignor shall pay a storage fee according to the Company's policy.
6. When consigned item(s) is sold, the Company shall pay the net sale proceeds after deducting seller's commission on consignment and shipping/handling expenses within 15 days from the date of the auction (within 25 days when the hammer price is higher than or equal to three hundred million Korean won), provided however, when the buyer fails to pay the Hammer Price, the payment of net sale proceeds may be deferred. In the event the date of payment for the net sale proceeds is a non-business day, such payment date may be delayed up to 2 business days.
Article 5 Proceeding of an Auction
1. The Company shall hold an exhibition preview for perspective Bidders to examine auction items
2. An auction starts in the order of lot numbers printed in the catalogue. However, the Company may withdraw the scheduled auction items without a prior notice, and may divide any lot into several items at auction, or may put several items in one collection at auction.
3. Prior to the operation of auction, the Company and a Consignor shall decide on Reserve Price, which shall be the minimum Hammer Price of items to be sold. However, with an agreement with a Consignor, Reserve Price may be earmarked as an Opening Price.
4. In order to keep the Reserve Price agreed with a Consignor, the auctioneer may place a bid or series of bids until the Reserve Price is reached. At this time, the bidding by auctioneer may proceed without indication and whether or not other Bidders are present. If a bid does not reach a Reserve Price, the bid is not valid.
5. The price asked for shall be entirely at the discretion of the auctioneer and the auctioneer shall present the bidding increments in advance during the auction. A Bidder may verbally call for an arbitrary price, which an auctioneer may refuse to accept at his/her discretion. The Opening Price may not be restricted by Reserve Price and may be either settled on an amount lower or higher than Reserve Price.
6. As reference of the auction items, the Company shall provide both low and high Estimate Prices to the Bidders. An Estimated Price shall be simply to serve as a good reference for the auction and shall not be a price that the Company takes responsibility for and shall be also irrelevant to the Hammer Price. Furthermore, the Company shall not be responsible for such Estimate Prices being used by the public outside.
7. A Successful Bidder and Hammer Price shall be decided by calling the highest bidding price at least once, a fall of the auctioneer's hammer and a call on the paddle number of the highest Bidder.
8. The auctioneer may decide on a valid Bidder or reoffer and resell at auction the disputed item when there is a dispute among Bidders, or when a validity of a bid is questionable. When a Successful Bidder is declared and an auctioneer begins on the auction of the next item, no one may make an objection to the previous auction.
Article 6 Bid and Successful Bid
1. In the auction, a Member or a person who has been entrusted by the Company's Member may make a bid.
2. There are different methods of bidding: bidding in person, written bid, and telephone bid.
3. To make a bid in person, a Bidder shall complete a registration form required by the Company, and shall be issued with a paddle. Member, who is granted with a paddle, shall be present in the auction room and declare his/her intention to bid for the price offered by raising up the paddle.
4. According to a set form of the Company, a Member may participate in bidding by either written bid or telephone bid. When the progress of the Company's auction is broadcasted live on television or internet, a Member may bid on the telephone. However, it is necessary to state his/ her intention of using those methods of bidding at least one day prior to the sale.
5. In case there is a Bidder who has suggested a price which is higher than Reserve Price, the successful bid goes to a Bidder who has suggested the highest bid among the Bidders.
6. In the event a bid in person and written bid make a bid on the same price, written bid shall take precedence and be successful. In the event of identical written bids, the earliest received shall take precedence and be successful.
7. A Successful Bidder may not export or take out abroad the items knocked down if it is a cultural asset or remain. (Please be aware that it is a violation of the Act on Cultural Properties Protection.)
8. A Consignor may not bid on the items that he/she has consigned.
Article 7 Limitations on Rights and Responsibilities of the Company
1. Under unavoidable circumstances, the Company may make changes to the previously notified auction date, time and place.
2. The Company may check on the name and identity of the person who wishes to participate in a preview and may request proof of identity. The Company has the authority to refuse admission to a preview of the person who wishes to enter.
3. For the printed materials and the Company's website, the Company may use the items which have arrived at consignment agreements for the purpose of the Company.
4. If there is a dispute over the authenticity and illegal transaction of the articles, and other related happenings occur, the Company may withdraw the consigned items, and may cancel the bid after it has been sold in the auction. In such event, the Company shall not be responsible to the Consignor and the Successful Bidder for any damages except for restoration to the original state.
5. Even though the Company has accepted the request for written bid or telephone bid, but the bid was not placed in the auction due to any mistake or for any other reason(s), the Company shall not take responsibility unless it was caused by the Company's intentional or grossly negligent conducts.
Article 8 Bidder's Obligations
1. Name of the artists, title of work of art, medium, size, provenance, etc. described on the catalogue are merely the Company's suggestion, not an absolute fact.
2. The Company exhibits the items to be sold "as it is." A Bidder shall do thorough research on the desired item(s) before auction. The Company does not provide any warranty and responsibility for the description and images in relation to conditions and characteristics of auction items provided by the Company except as provided under Article 13. A Bidder shall check whether there is any damage or restoration, mistakes and omission on the catalogue description, and discrepancy between the image and the real work, and shall participate in the auction under his/her own judgment and responsibility. The Company progresses on the auction under the premise that the Bidders have carried out this obligation faithfully.
Article 9 Commission
1. (Seller's Commission)
The seller's commission shall be 10% (excluding VAT) of the Hammer Price.
2. (Transfer Tax)
There must be a transfer tax imposed on a profit for the transferred calligraphy, painting and antique pieces. This transfer tax will be applied for the pieces' sale prices more than 60 million won, except for the ones by living Korean artists when the transfer happens. The tax rate is 20% of the margin from transfer, and if the purchasing price has not been clearly marked, 80% of sale prices (in case of the piece has been possessed more than 10 years, 90%) will be approved as for the necessary expenses. This transfer tax will be objected for the calligraphies, paintings and antiques which referred below.
The calligraphies, paintings and antiques relevant to those clauses. Paintings, drawings and pastel pieces (only for the hands drawn pieces, exclude the designs and decorative works), collage pieces and similar decorated plates Original prints, pressed pictures and lithography Antique (created more than 100 years ago) Other than those related to the first clause, the calligraphies, paintings and antique which has an equal historical and artistic value and after consultation by the minister of the Ministry of Strategy and Finance and the minister of Culture, Sports and Tourism then determined through the Ministry of Strategy and Finance's ordinance
3. (Buyer's Premium)
Buyer's Premium shall be 15% (excluding VAT) of the Hammer Price.
Article 10 Payments of the Purchasing Price and Delivery of Art Pieces
1. A Successful Bidder shall make full payments, including the amount of the Hammer Price, buyer's premium and any applicable taxes within 7 days after the sale (within 21 days if the Hammer Price is higher than or equal to KRW 300,000,000), provided however, when the Hammer Price is higher than or equal to KRW 300,000,000, the purchaser shall prepay 30% of its total Purchasing Price within 7 days. If the payment date is a non-business day, the following day shall be a due date for the payment.
2. In case the Successful Bidder fails to make full payments of Purchasing Price within 7 days after the sale (within 21 days if the Hammer Price is higher than or equal to KRW 300,000,000), the Company may levy a certain amount of indemnities for the days of delay according to the Company policy.
3. A Successful Bidder may not withdraw the successful bid and when a withdrawal is unavoidable, he/she shall report the intention of withdrawal in writing within 7 days after the sale, and pay 30% of the Hammer Price as a penalty within 7 days after the sale. In addition, the stipulation above does not affect the claim of both the Company and the Consignor for compensation of damages.
4. If a Successful Bidder does not make a declaration of intention within 7 days after the sale, the Company will consider it as not having the intention to purchase the auction items and may carry out the following measures:
1) In case a Successful Bidder fails to make a payment, the Company may cancel the sale and resell the property publicly or privately. In this case, the Successful Bidder shall pay 30% of Hammer Price as a penalty for breach of promise under Article 10 (3). The penalty above does not affect the right to claim by both the Company and the Consignor for compensation of damages.
2) The Company may expose personal information on a Successful Bidder to a Consignor to the extent necessary for a Consignor to file a lawsuit for compensation of damages.
5. The payment of the Purchasing Price may be made by bank transfer to the designated bank account, a bank check, and cash. (The Company's bank account number: 1081-500-700549 at Woori Bank)
6. With an agreement with the Company prior to bidding, a Successful Bidder may make payments in installments for the purchased items.
7. A Successful Bidder shall collect the purchased items within 7 days after a full payment of Purchasing Price. When there is a delay in picking up the items, he/she shall pay for a storage charge under the Company's stipulations. In case the Successful Bidder fails to pick up the items after 21 days have passed since the full payment, the Company does not accept liability for loss or damages to the items.
Article 11 Sale after the Auction
1. If a Consignor has not expressed an opposition at the time of the consignment of his/her properties, the Company shall assume that a Consignor has agreed on the terms that when the consigned items have failed to sell at the auction, the Company shall take custody of the items for one week in order to submit them for sale after the auction ("After-Sale'). (However, it shall be noted that not all items that have failed to sell at the auction are submitted for After- Sale, but whether or not an item shall be submitted for After-Sale is decided fundamentally by
the Company unless there is a clear statement of request by a Consignor.)
2. After-Sale is operated by written bids, and the closing time for bidding is 1 PM of a day after 5 business days from the sale.
3. The After-Sale shall be also governed by this Agreement.
Article 12 Shipping and Insurance
1. (Shipping) At the responsibilities and expenses of a Consignor or a buyer, the Company may make arrangement of shipping of items and insurance subscription in case a Consignor or a buyer wishes for such delivery of properties.
2. (Insurance)
A Consignor shall present an insurance policy satisfactory to the Company effective from the delivery of auction items, either until the Company discontinues the custody/management of the item or within 50 days from the scheduled auction date. At the responsibility and expense of the Consignor, the Company may subscribe to insurance on the Consignor's behalf if the consigner wishes
Article 13 Warranty and Restoration to the Original State
1. With respect to the auction items, the Company, as an intermediary, only warrants the boldly printed headlines in the first line of the catalogue. Other supplemental explanations or estimated prices printed in the catalogue and other contents verbally expressed or in writing by staff of the Company shall be solely reference materials, not contents of warranty.
2. The Company shall issue a letter of warranty within the limits of the warranty mentioned in the above paragraph at purchaser's request.
3. As an intermediary, the warranty period of the Company shall be 3 years from the date of the sale. When the warranty shall be proved wrong during this term, the Company shall cancel the sale and shall refund the Hammer Price and buyer's premium paid for the lot, provided however, this shall occur when the buyer strictly satisfies the following conditions:
1) Shall a buyer raise a question on the contents of the warranty by the Company; he/she shall present the auction sale date(s) and lot number(s) of the corresponding item(s), and the convincing ground for such question in writing when making a claim.
2) The buyer shall give written notice of claim to the Company within 3 months from the initial doubt.
3) The buyer shall return the corresponding item(s) to the Company in the same conditions as at the time of the sale.
4. In case there is a discrepancy on the grounds presented between the buyer and the Company, the parties may request opinions in writing from two experts of the related field in order to confirm the authenticity of the corresponding item(s) to the buyer. The expert shall be the person confirmed both by the buyer and the Company. The Company may seek advice from an expert at its cost.
5. Limitation on Warranty Responsibilities Each of the following shall be excluded from the warranty:
1) In case the opinion(s) on the articles at the date of the sale was an expert's general opinion, but the opinion has been modified afterwards, or there is a conflict in opinions,
2) In case the catalogue description or saleroom notice indicated that there were the possibilities of dissenting opinion(s) from scholar(s) or group of experts,
3) In case it is proven that the details under the warranty are wrong either by a method that was not generally used, one that was unreasonably expensive, or one to carry out destructive analysis at the date of the sale.
6. In case the Company becomes responsible under the warranty; the Consignor of the corresponding item(s) also has the obligation to restore the item(s) to the original state.
7. (Disapproval of Transfer) On the list of warranty, the contents under the warranty shall not be transferred to a third party. Namely, the contents under the warranty shall apply only to the original buyer of the lot. However, if corresponding item(s) has been inherited because the original buyer died within 3 years, details under the warranty are transferred to the inheritor. ? (Limitations on the Responsibility of Warranty) The Company's responsibility of a warranty does not exceed the amount that a buyer paid in actuality to the Company. Namely, the Company does not pay for the interest or loss occurred as a result of the change of currency value.
Article 14 Others Including Amendment to this Agreement
1. The Company shall post this Agreement on its website and shall insert it in catalogues, official documents of pick-up and delivery, and consignment agreements in a place where Users can easily find.
2. The Company shall explain important parts of this Agreement when necessary in order to prevent Users from misunderstanding the contents of these provisions.
3. To the extent permitted under the Act on Standardized Contracts and relevant laws, the Company may amend the provisions of this Agreement.
4. In case the Company makes an amendment, it shall post on the first page of the Company's website a notification to compare and clearly state the previous conditions and the revised conditions from 7 days prior to the effective date until one day prior to the effective date of the amendment.
Article 15 Jurisdiction and Governing Law
1. The Seoul Central District Court shall have jurisdiction to hear any dispute arising from the commercial transaction between the Company and a User.
2. The laws of the Republic of Korea shall be the applicable law for any suit relating to commercial transaction between the Company and a User.
