Conditions of Business

Part 1 General

Article 1 Jurisdiction
These Conditions of Business (hereinafter referred to as the "Conditions") are formulated in accordance with the relevant laws, decrees, rules and regulations of the Hong Kong Special Administrative Region and the provisions of the Auction Articles of Tsi Ku Chai Auctioneers (China) Company Limited (hereinafter referred to as "Tsi Ku Chai Auct") and in light of international practice.
By bidding at auction the Bidder agrees to be bound by these Conditions. Buyers and Sellers are therefore advised to read the Conditions carefully and each clause contained herein, and shall be responsible for their actions under these Conditions.

Article 2 Declaration
1. We generally represent the Seller during the auction. When the auctioneer confirms the highest bid by striking his hammer or in any other manners openly, the Bidder with the highest bid shall be the Buyer of the Lot and the sale contract concerning the Lot between the Seller and the Buyer shall come into effect immediately. Any legal effect accrued thereupon shall be borne by the Seller and the Buyer respectively. These Conditions are the terms on which we contract, as the Auctioneer, with the Seller and with the Buyer as well as the terms on which the Seller and the Buyer conclude a contract concerning the Lot.
2. We, acting as agent of the Seller, shall undertake no liability for any breach of contract by the Buyer or the Seller.

Article 3 Definitions and Interpretation
The terms used in these conditions shall have following meanings:
1. "We/Us/Company" means Tsi Ku Chai Auctioneers (China) Company Limited.
2. "Bidder" means a natural person or legal person or organization that has duly completed the necessary registration formalities with our Company and acquired the right to bid..
3. "the Buyer" means the person who makes the highest bid accepted by the auctioneer;
4. "Lot" means any item(s) deposited with us for sale at auction and , in particular, the item or items described against any lot number in any catalogue;
5. "Seller" means the owner of the owner's agent or the person in possession of the property consigned;
6. "Hammer Price" means the amount of the highest bid accepted by the auctioneer in relation to a Lot;
7. "the Reserve" means the minimum price per the agreement with the Seller at which the Lot can be sold.
8. "Auction Date" means the published date on which the auction will formally begin.

Part 2 Conditions Applicable to Buyer

Article 4 Bidder and Buyer
1. Every Bidder shall be deemed to act as principal unless Tsi Ku Chai Auct has, before the date of the auction, acknowledged in writing that the Bidder is acting as agent on behalf of a disclosed principal.
2. Every Bidder shall, based on his/her identity card or passport, obtain a bidding number beforehand before making any bid at the auction.

Article 5 Deposit
All Bidders will be required to place a deposit before a numbered paddle can be issued. The amount of deposit to be charged will be announced before the date of auction. The deposit will be refunded to the Bidders, with no interest, within five business days after the auction in the case of unsuccessful bids. If a Bidder succeeds at auction, the deposit will be used to offset the invoice value payable by that Bidder (as buyer) and the balance (if any) will be refunded at collection.

Article 6 Catalogue and Lot Descriptions
1. For the auction, we will prepare a catalogue to introduce the status of the Lot with words and/or pictures for the convenience of Bidders and Sellers. The words, reference price and pictures therein contained as well as other images and advertisements are for Bidders' reference only and are subject to revision before auction. We provide no guarantee for the authenticity, value, tone, quality and flaw or defect of any of the Lots.
2. In case that the tone, color, gradation and shape shown in the catalogue and/or any other illustrations, images and advertisements differ from those of the original Lot due to print, photograph and other technical reasons, the original shall apply.
3. We strongly advise the Bidders to inspect personally the original Lot they intend to bid by identification or other methods before Auction Date. Bidders shall judge whether the descriptions in the catalogue are accurate rather than relying on the accuracy of our catalogue and other images and advertisements of the Lot.

Article 7 Absentee Bid
1. Prospective Bidders are advised to attend the auction in person. In the event the Bidder is unable to do so, Tsi Ku Chai Auct will accept the Buyer's written instruction to bid on their behalf, but neither Tsi Ku Chai Auct nor its employees shall be liable to the Buyer for any neglect or default in so doing or for failure to do so.
2.Prospective Bidders shall authorize Tsi Ku Chai Auct to act as his/her agent by submitting the Commission Bid Agreement, duly completed, at least 24 hours before the auction day, and shall pay Tsi Ku Chai Auct a deposit in accordance with the following schedule:
-Total bid at HK$50,000.00 or below deposit at 100%
-Total bid at HK$50,001.00- 200,000.00 deposit at HK$50,000.00
-Total bid at HK$200,001.00 or above deposit at 30%
The balance shall be paid within seven days after auction ended.
3. If we receive more than one absentee bid with same bid price for a particular lot, and at auction these bids are the highest bids for the lot, it will be sold to the person whose absentee bid we received first.

Article 8 Images and Screens
At some auctions, there will be a video or other screens in operation for the convenience of Bidders, which is intended for reference only. However, there may be errors or omissions in the figures, numbers, images projected, or foreign exchange rates on the screen. We shall not be liable for any losses and damages caused by such errors or omissions.

Article 9 Auctioneer's Discretion
1. The auctioneer has the right at his absolute discretion to refuse any bid, to advance the bidding in such manner as he deems appropriate, to withdraw and, in case of error or dispute, to put an item up for bidding again.
2. In making a bid, the Bidder acknowledges the increment offered by Tsi Ku Chai Auct. Only Tsi Ku Chai Auct on-site auctioneer has the right to adjust the increment.

Article 10 Successful Bid
When the highest bid is confirmed by striking the auctioneer’s hammer or in other public manner, the Bidder with the highest bid succeeds in the bid. The sale contract of the Lot between such Bidder or Buyer and the Seller is therefore concluded. The Buyer shall sign the Confirmation Slip showing the successful bid after the highest bid is confirmed by striking the auctioneer’s hammer or in other public manner.

Article 11 Remuneration
The Bidder will be deemed as the Buyer of the Lot after succeeding in bidding and shall pay us remuneration equal to:

Hammer Price HK$1,000,000.00 or under 15% ;
  HK$1,000,001.00 or over 13%.

Article 12 Payments
1. The Buyer shall make full payments in a lump sum and collect the Lot (package and transportation at Buyer's expense) within seven days after the Sale Date. Otherwise, the Buyer shall be liable for breach of contract.
2. All payments shall be made in Hong Kong Dollars. If the Buyer make payments in currency other than the designated one, the currency shall be converted at the rate agreed upon by the Buyer and us or at the rate announced by Bank of China (Hong Kong) Limited one business day prior to the payment. We shall charge the Buyer for any conversion costs or bank charges incurred.
3. Payment

a. By Cash
b. By Cheque (Payable to "Tsi Ku Chai Auctioneers (China) Company Limited")
c. Remit payment to the following account:
  Account Name: Tsi Ku Chai Auctioneers (China) Company Limited
  Bank Name: Bank of China (Hong Kong) Limited,
Queen's Road Central Branch
  Account No.: 012-746-1-003365-0

Article 13 Collection of Lots
1. The Buyer shall collect the purchased lot no later than seven days after the Sale Date. Otherwise, the Buyer shall be solely responsible for all risks and losses of the lot concerned and bear all expenses for transportation, storage and insurance, etc. resulting from such delay. Even though the lot is still under our or any of our agent's custody, neither we nor our agents shall be liable for any losses or damages incurred regardless of the reasons.
2. We may arrange packing and handling of the purchased Lot on behalf of the Buyer upon his/her request and the Buyer shall be liable for any loss arising thereupon. In addition, we shall undertake no liability for any fault, omissions, damages and losses caused by the packers or carriers we recommended.
3. Where purchases are not collected within seven calendar days from the Sale Date, whether or not payments have been made, we shall be permitted to remove the property to a third party warehouse at Buyer's expense, and only release the items after payment in full has been made for the removal, storage, handling, insurance and any other costs incurred, together with payment of all other amounts due to us.

Article 14 Remedies for non-payment
If the Buyer fails to pay for the purchased Lot on time,
Tsi Ku Chai Auct shall have the right to take the following actions:
1. To take legal action against the Buyer for all losers incurred due to breach of contract, including loss of interest due to delay payment or failure in making payment.
2. To rescind or retain the purchased Lot or any other Lots sold to the Buyer at the same or any other auctions, until the Buyer fulfills all his/her obligations. All costs and expenses incurred in connection therewith (including storage), shall be borne by the Buyer.
3. Subject to Seller's consent, re-sell the Lot by public auction or any other means according to these Conditions. The original Buyer shall be liable to the Seller for the remuneration/commission and other expenses occurred at such auction as well as all expenses for re-sale by public auctions or any other means. In addition, the original Buyer shall also be liable for the difference between the original Purchase Price and the proceeds from such re-sale.

Article 15 Transfer of Ownership
The Buyer will acquire ownership of the Lot after payment of the Purchase Price in full.

Article 16 Transfer of Risks
After a successful bid, any Lot purchased shall be entirely at Buyer's risk as soon as one of the following occurs:
1. the Buyer collects the Lot purchased; or
2. the Buyer pays us full Purchase Price for the Lot; or a lapse of seven days from the Sale Date.

Part 3 Conditions Applicable to Seller

Article 17 Consignment Procedures and Seller's Warranty
For consignment, the Seller shall hold a valid identity card or other proof of identity, and sign a consignment contract with us. If the consignment is done through an agent, the agent must submit valid authorization document, and sign a consignment contract with us. At the same time, the Seller or his/her agent warrants as follows:
1. Seller is the sole owner of the Lot with unrestricted rights to transfer title to the Buyer without infringing upon the legal rights (including copyright) of any third party.
2. Seller has, to the best of his/her knowledge, made full and complete disclosure regarding the origin of the Lot, any flaw or defect therein contained, without any concealment and fabrication.
3. The Seller shall indemnify us and/or the Buyer against any claims, losses and damages arising from any disputes over the ownership of the Lot, and be responsible for all expenses and costs incurred by us and/or the Buyer as a result of the breach of any of the above warranties.

Article 18 Insurance
1. Unless the Seller instructed otherwise in writing, all the Lots will be covered by insurance arranged by Tsi Ku Chai Auct upon signing of the consignment contract and delivering of the Lots to us. The sum insured shall be based on the Reserve per the consignment contract. The sum insured is for insurance purposes only and by no means our warranty for the value or the
Hammer Price of the Lot.
2. Upon successful sale, the insurance shall terminate on the earlier of the expiry of seven days from Auction Date and the date when the Buyer collects the Lot. If the auction fails, the insurance shall terminate upon the expiry of 30 days after the Auction Date or the date the Seller collects his/her Lot (whichever date is earlier).
3. Should the Seller notifies us in writing to waive the insurance coverage, he/she shall be liable for all the risks and damages.
4. Any insurance claims arising from damages or losses of the Lot shall be based upon policies and regulations of the insurance company concerned. Upon due settlement of the claims, we shall pay the Seller all the insurance proceeds after deducting all expenses incurred (sales commission excepted). During the period in which we assume the risks of the Lot, we shall be liable for any loss thereupon for up to 100% of the Reserve only.
5. We shall neither assume liability for the lost/damage of picture frames and glass panes, nor for the loss and damage of the Lot caused by the following circumstances whether directly or indirectly:
(a) variations in humidity and temperature;
(b) normal wear and tear, natural deterioration, or existing flaws and defects;
(c) war or warlike nuclear attack, contamination due to radioactivity, and any terrorist attack.

Article 19 Commission and Expenses
1. Except as otherwise provided in an agreement between the Seller and Tsi Ku Chai Auct, the Seller shall pay 10% of the Hammer Price as commission. Insurance shall be calculated at 1% of the Hammer Price and illustrations special advertising.
2. If the Lot fails to sell, the insurance premium payable by the Seller shall be equivalent to 1% of the Reserve.

Article 20 Sale Arrangements
1. All Lots offered are subject to Reserve , unless otherwise agreed upon between the Seller and us. The Reserve shall be agreed by the Seller and us in writing and any subsequent modification or amendment thereof shall be subject to mutual consent.
2. We shall have absolute discretion regarding the manners the Lot is described and illustrated in the catalogue or any condition report, the place and manner of sale, the decision as to whom should or should not be admitted to the auction, which bids should be accepted, whether expert advice should be sought, and the combination or division of Lots for sale.
3. Any estimate given, orally or in writing, is a matter opinion only and is not an assurance of the price the Lot will eventually be sold.

Article 21 Conditions of Sale
1. The Lot shall be offered for sale subject to the Reserve. We shall under no circumstances be liable if bids are lower than the Reserve. However, we shall be entitled to sell the Lot below the Reserve. If we do so, we shall pay the Seller the difference between the Hammer Price and the Reserve.
2. The Seller shall neither bid for the Lot consigned to us by himself/herself, nor authorize any other person to bid on his/her behalf. The Seller shall be liable for the violation of this provision and indemnify us for any consequential losses and damages incurred by us.
3. If any Lot is bought in or otherwise unsold by auction, we are authorized as the exclusive agent for the Seller for a period of up to 30 days following the Auction Date to sell such Lot privately at a price which will give the Seller a net proceed (i.e. after deduction of all charges due from the Seller) at least equivalent to what the Seller would have been entitled had the Lot been sold at the Reserve. Or, subject to Seller's consent, we can sell the Lot at a lesser amount. In such
cases, the Seller's obligations to us with respect to such a Lot are the same as if it had been sold at auction.
4. We shall, in addition to the Hammer Price, collect from the Buyer a premium. We shall be entitled to retain this premium.

Article 22 Withdrawal
1. The Seller may not withdraw the Lot from sale without our consent. In the case that the catalogue or any other advertisements of the Lot have begun printing upon the Seller's withdrawal, the Seller shall pay an amount equal to 25% of Reserve of the Lot and other expenses in connection therewith. In the case that the catalogue or other advertisement has not been printed, the Seller shall pay an amount equal to 10% of the Reserve and other related expenses. Our Company shall not be liable for any dispute or litigation arising from such withdrawal.
2. We reserve the right to withdraw the Lot from sale at any time should there be any breach of these Conditions or we believe that it would be improper to include the Lot in the sale.

Article 23 Successful Bids
1. After the sale, we shall ask the Buyer for full payment. Should there be no disputes between the Buyer and us, we shall pay the Seller 35 days after Auction Date the Hammer Price less applicable deductions.
2. If the Buyer pays late, we shall only make payment to the Seller within 7 days after receipt of payment from Buyer.
3. The sale shall be deemed as cancelled should the Buyer fail to make full payment within 60 days after Auction Date. We shall therefore return the Lot to the Seller without any liabilities and obligations.
4. Should we be obliged to take the Lot back from the Buyer on the basis that it is a fake or forgery, the Seller shall refund to us in full the proceeds of sale he/she so received.
5. Unless otherwise instructed by the Seller, we shall pay the Seller in Hong Kong currency.

Article 24 Unsold Lots
1. If any Lot is unsold, or is excluded or withdrawn from the sale for any reasons, the Seller must collect the Lot
from us within 7 days upon the issuance of our notice or within 30days after Auction Date (whichever date is earlier). Any costs incidental to the collection of the Lot shall be borne by the Seller. The Seller shall pay all the expenses in full before the Lot is released.
2. If any such Lot is not collected within 60 days after the date of sale or the abovementioned date of notice (whichever date is earlier), we shall have the right to dispose it by auction or any other means as we deem fit. The proceeds we so received, after deducting all expenses incurred, shall be for Seller's account and he/she shall collect same from us.
3. The Seller shall assume all the risks should he/she fail to collect any unsold Lots. If the Seller requires our assistance in arranging for the return of the Lots, he/she shall bear all the risks and expenses so incurred. Unless the Seller requests, normally return Lots will not be covered by insurance.

Article 25 Copyright
We shall be entitled to take photographs, make illustrations, catalogue or other images relating to the Lot consigned to us for auction and shall have the copyright for the abovementioned photographs, illustrations, catalogue or images.

Article 26 Law and Jurisdiction
1. The rights and obligations of the parties with respect to the Conditions, the conduct of the auction and any matters connected with any of the foregoing shall be governed by and interpreted in accordance with the Hong Kong laws.
2. By bidding at auction, whether in person or by agent, by absentee bid, telephone or other means, the Buyer shall be deemed to have accepted these Conditions and submitted, for the benefit of Tsi Ku Chai Auct to the exclusive jurisdiction of the courts of Hong Kong.

Note: These Conditions of Business are written in Chinese and English. If there are any discrepancies between two versions, the Chinese version prevails.