Condition of Business

Chapter II The Seller

Article 5 Consignment Procedure

When arranging for the consignment of the Seller’s Lot to the Company for auction:

1. The Seller must present a valid identity document with photo issued by the government (e.g. resident identity card or passport) if the Seller is a natural person and sign a consignment auction contract with the Company;
2. A valid certificate of incorporation, proof of shareholding, or a legal authorization document shall be required if the Seller is a legal entity or any other organization, which shall sign a consignment auction contract with the Company.
3. When the Seller signs a consignment auction contract with the Company, the Company shall be automatically authorized to make pictures, illustrations, catalogues, or other video images of the Lot.

Article 6 The Seller's Agent

1. When arranging for the consignment of the Lot to the Company for auction, the Seller’s Agent shall submit to the Company the relevant authorization certificates including:
2. A valid identity document if such Agent is a natural person;
3. A valid certificate of incorporation and proof of shareholding if such Agent is a legal person or any other organization; and
4. A power of attorney duly executed. The Company has the right to examine the aforesaid documents in a lawful manner.

Article 7 The Seller's Warranties

The Seller hereby makes irrevocable warranties to the Company and the Buyer with respect to the Lot it consigns to the Company for auction as follows:

1. The Seller has absolute ownership or legal right to dispose of the Lot. The auction of the Lot will not prejudice any legal interest (including copyright interest) of any third party, and will not violate the provisions of relevant laws and regulations;
2. The Seller has, to the best of its knowledge, made full, complete and accurate disclosure and description to the Company with respect to the origin and any flaw of the Lot and notified the Company in writing, without any concealment or fabrication. If the Lot is liquor or tea, the Seller should truly disclose the defects or flaws about, including but not limit to the packaging, labels, level of wear and tear, corks, etc.;
3. The Seller is not subject to trade sanctions, embargoes or any other restriction on trade in the jurisdiction in which it does business as well as under the laws of Hong Kong, the laws of the European Union, the laws of England and Wales or the laws and regulations of the United States, and is not owned (nor partly owned) or controlled by such sanctioned person(s) (collectively, “Sanctioned Person(s)”);
4. The Lot is not connected with nor has any link to nor is derived from any criminal activity, including without limitation tax evasion, money laundering, terrorist activities or other criminal activity, and the Seller is neither under investigation, nor has it been charged with or convicted of without limitation, tax evasion, money laundering, terrorist activities or other criminal activity;
5. If the Lot being consigned shall be imported into Hong Kong, the Seller shall guarantee the compliance with the laws of its origin, and ensure the completion of the export and import procedures and notify the Company in writing; and
6. The Seller must ensure that the auctioned items do not contravene any laws of Hong Kong (including the Public Health and Municipal Services Ordinance, the Food Safety Ordinance and the Protection of Endangered Species of Animals and Plants Ordinance the Endangered Species of Wild Animals and Plants), ensure and disclose to our Company that it has any license or qualification registration to possess, disposal or sale of the auctioned item required by the laws of Hong Kong. The Seller should ensure that if they require our Company to make an additional license or permit to the relevant departments for the auction, display, disposal or possession of the auctioned items, they should notify us in the written notice not less than two months prior to the auction.

7. The Seller shall guarantee that the Lot is authentic. In so doing, the Seller guarantees:

   a) The Lot is not a counterfeit or forgery of:
   i. The work of any artist, author or manufacturer, if the Lot is described by the Seller as to the work of that artist, author or manufacturer;
   
   ii. A work created or produced within a particular time frame or culture, if the Lot is described by the Seller as a work created or produced during that time frame or culture;
   
   iii. A work of a particular origin or source, if the Lot is described by the Seller as a work of that origin or source; or
   
   iv. A work created or crafted or refined or restored through a particular process or manner, if the Lot is described by the Seller as a work created through that process or manner.

   b) In the case of jewellery and timepieces, in addition to 7(a) above, the Lot is crafted in the manner as described by the Seller, out of the particular materials as described by the Seller, and had underwent no restoration processes other than those stated by the Seller; and

   c) In the case of gemstones, in addition to 5(a) above, the Lot had undergone no beautification processes other than those specified by the Seller.

8. The Seller hereby undertakes that none of the Proceeds of Sale will be transferred to or used for the benefit of any Sanctioned Person(s), nor will any party involved in the transaction including financial institutions, freight forwarders or other forwarding agents or any other party be a Sanctioned Person(s) nor owned (or partly owned) or controlled by a Sanctioned Person(s), unless such activity is authorized in writing by the government authority having jurisdiction over the transaction or in applicable law or regulation.
9. Where the Seller is acting as Agent (for the purposes of this Article, the “Agent”) for another party (the “Principal”) the Agent warrants in its own capacity (in addition to the warranties set out above that: (i) the arrangements between the Agent and the Principal in relation to the Lot or otherwise do not, in whole or in part, facilitate tax crimes; (ii) the Agent has conducted appropriate customer due diligence on the Principal in accordance with all applicable anti-money laundering, anti-terrorism and sanctions laws and regulations and does not know, and has no reason to suspect, that the Lot consigned by the Agent is connected with or has any link to the proceeds of any criminal activity, including without limitation tax evasion, money laundering, terrorist activities or other criminal activity or that the Principal is under investigation, or has been charged with or convicted of without limitation tax evasion, money laundering, terrorist activities or other criminal activity; and (iii) the Agent will disclose to the Company the identity of the Agent’s Principal and the Agent consents to the Company relying on the Agent’s due diligence and the Agent will retain for a period of not less than 5 years the documentation evidencing the due diligence. The Agent will make such documentation promptly available for immediate inspection by an independent third-party upon the Company’s written request to do so.
10. The Company reserves the right to seek identification of the source of funds received, and to make enquiries about any person transacting with the Company. If the Company has not completed its enquiries in respect of anti-money laundering, anti-terrorist financing or other checks as it considers appropriate concerning the Seller or where the Seller is acting as Agent, the Agent and its Principal, or the Buyer to the Company’s satisfaction at its discretion, the Company shall be entitled either not to complete or to cancel the sale of any lot, as appropriate, and to take any further action required or permitted under applicable law without any liability to the Seller.
11. If the Seller violates any of the above warranties and undertakings, the Seller shall fully indemnify all losses, costs and expenses suffered by the Company and/or the Buyer.

Article 8 Reserve

1. Unless otherwise agreed upon by the Company and the Seller, all Lots are offered subject to a Reserve. The Reserve shall be determined by the Seller and the Company in writing through consultation, and no modification of the Reserve shall be made without the prior consent of the other party after it is determined by both parties.
2. Unless otherwise agreed in writing, the Reserve for each Lot will be equal to seventy five per cent (75%) of the low pre-sale estimate notified to the Seller.
3. No Reserve may exceed the Lot’s final low pre-sale estimate announced or published by the Company. In the event of a Reserve agreed in a currency other than Hong Kong dollars without written agreement on the exchange rate, the Reserve shall be an amount equal to the Hong Kong dollar equivalent based on the average telegraphic transfer exchange rate offered by HSBC on the thirtieth calendar days preceding the auction.
4. Following the bidding failure of the Lot authorized by the Seller, the Auctioneer shall have the right to sell such Lot at the Reserve after such auction and the Seller must pay the Commission to the Auctioneer. In no circumstance shall the Company bear any liability for failure to sell the Lot at the Reserve at the auction held by the Company.

Article 9 The Company's Discretion

The Company may decide the following matters at its absolute discretion:

1. Explanation and/or appraisal of any aspect of any Lot through the catalogue of the Lot and/or news media and/or other carriers;
2. Whether to consult any expert or not;
3. The illustration of the Lot in the catalogue, the exhibition of the Lot and other forms of publicizing the Lot, the arrangement in the promotional activities as well as the standards of payable expenses;
4. Suitability of a Lot for auction by the Company;
5. Other matters such as the date of auction, the place of auction, the conditions of auction and the manner of auction.

The Company shall not be liable for any delay in meeting nor failure to meet its obligations under the consignment auction contract (including without limitation the postponement or cancellation of any auction) and may terminate its obligations under the consignment auction contract to offer the Lot for sale, or cancel or postpone any auction, as a result of circumstances beyond its reasonable control or which make such performance impracticable, including without limitation any fire, flood, natural disaster, or other act of God; any riot, strike, or other civil or labour unrest; transportation or other infrastructural incapacitation, or inability to secure sufficient labour, power, essential commodities, or necessary equipment; any act of war, armed conflict, or terrorist attack; any governmental action or regulation enacted or effected following the execution of the consignment auction contract and which is prohibitive or restrictive of the auction(s), the sale of the Lot, or any other performance contemplated by the consignment auction contract; any outbreak of disease, public health emergency, quarantine, epidemic, pandemic, nuclear or chemical contamination, or other condition that threatens the life, health, or safety of the Company’s personnel, vendors, or clients as determined by the Company in its reasonable discretion.

Without prejudice to the above, in the event that the Company determines not to conduct an auction on the scheduled date as a result of circumstances beyond its control or which make such performance impracticable, the Company may postpone or cancel any auction, or change the platform for or format of any auction (including but not limited to from a live auction to an online auction only), and the sale of the Lot shall be subject to these Conditions of Business applicable to the auction in which the Lot will be placed.

Article 10 Lot Not Auctioned

After the Seller has signed the consignment auction contract with and delivered the Lot to the Company, if for any reason the Company believes that the Lot is not suitable for auction by the Company, the Seller shall collect the Lot within thirty days from the issuance date of the Company’s notice (fees for packaging and transportation shall be at the Seller’s own expense). The consignment auction contract between the Seller and the Company will terminate on the date when the Seller collects the Lot. If during the above-mentioned period the Seller fails to collect the Lot, the consignment auction contract will automatically terminate upon the expiration of such period. If within seven days after the termination of the consignment auction contract the Seller does not collect the Lot, the Company shall have the right to charge the Storage Fee, insurance fees and other reasonable expenses, and to dispose of the Lot in a way the Company deems proper. The Seller is responsible for the collection of, if any, the amount obtained from the disposal after deducting all the fees and expenses incurred by the Company.

Article 11 Suspension of Auction

The Company has the right to suspend the auction of any Lot at any time before the actual auction in any one of the following situations:

1. The Company has an objection to the ownership or authenticity of the Lot;
2. Any third party has an objection to the ownership or authenticity of the Lot and can provide relevant evidence materials as to the basis of such objection, pays a security pursuant to the Company’s requirements and is willing to take the corresponding liabilities for the legal consequences and all losses caused by the suspension of auction;
3. The Company has an objection to the explanation of the Seller or the accuracy of the Seller’s warranty mentioned in Article 7 hereof;
4. Any evidence proves the Seller has violated or will violate any provisions of these Conditions of Business;
5. For any other reason, the Company believes that the auction of such Lot shall be suspended; or
6. If the Company is aware of any ownership or other dispute in relation to the Lot being consigned for auction, the Company shall have the right to refuse to return such Lot until the dispute is settled.

Article 12 The Seller's Withdrawal of Lot

The Seller may withdraw the Lot at any time prior to the Auction Date by issuing a written notice to the Company. In the case that the Lot has been listed in the catalogue or other public materials and they have begun to be printed at the time of the withdrawal of the Lot, the Seller shall pay an amount equal to 20% of the Reserve of the Lot and all other expenses. In the case that the catalogue or other public materials have not been printed, the Seller shall pay an amount equal to 10% of the Reserve of the Lot and all other expenses. Any dispute or claim arising out of the Seller’s withdrawal of the Lot shall be borne by the Seller and has nothing to do with the Company.

Article 13 Automatic Insurance

Unless otherwise instructed by the Seller in writing, all Lots will be automatically covered under the insurance policies purchased by the Company after the Seller enters into the consignment auction contract with the Company and delivers the Lots to the Company. The insured amount shall be based on the Reserve agreed by the Seller and the Company in the consignment auction contract (if there is no Reserve, it shall be the agreed insured amount of the Lot; if the Reserve is adjusted, it shall be the original Reserve of the Lot). The insured amount is only applicable to insurance and claim for compensation, is not the Company’s warranty or guarantee for the value of the Lot, and does not mean that the Lot can be sold for an amount equal to the insured amount through any auction by the Company.

Article 14 Insurance Premium

If the Lot is sold, the insurance premium payable by the Seller shall be 1% of the Hammer Price unless otherwise agreed by the Seller and the Company. If the Lot is not sold, the Seller shall as well pay the insurance premium at 1% of the Reserve.

Article 15 Insurance Period

If the Lot is sold in the auction, the insurance period shall terminate at the earlier of the seventh day after the Sale Date (including the Sale Date) and the date when the Buyer collects the Lot. If the Lot is not sold in the auction, the insurance period shall terminate upon the expiry of thirty days after the Company issues the notice on the collection of the Lot.

Article 16 Insurance by the Seller

In the event that the Seller notifies the Company in writing not to insure the Lot, it shall undertake all the risks and the following liabilities at any time (unless otherwise ruled by an arbitration institution):

1. To compensate for any claim or action brought by any other parties against the Company with respect to the damage or destruction of the Lot;
2. To compensate the Company and/or any other parties for all losses suffered and all expenses incurred because of the damage or destruction of the Lot caused by any reason; and
3. To notify the compensation related provisions herein to any insurer of the Lot.

Article 17 Insurance Disclaimer

The damage or destruction of the Lot caused by natural wear, inherent flaws, internal or potential defects, change of substance itself, self-combustion, self-heating, oxidation, corrosion, leakage, rat-bite, worm-bite, change in the atmosphere (climate or air temperature), change in humidity or temperature, or other gradual changes or caused by force majeure such as earthquake, tsunami, war, hostile action, armed conflict, terrorism, coup, strike and social riot, or nuclear radiation or radioactive pollution as well as the damage or destruction of book frames, glass, drawers, bottom pads, trestles, mountings, insert pages, scroll heads or other similar accessories caused by any reason is not within the scope of insurance coverage. The aforesaid risks should be borne by the Seller.

Article 18 Insurance Indemnity

Any damage or destruction of the Lot caused by incidents or disasters covered by the insurance purchased by the Company for the Lot shall be handled in accordance with the laws of Hong Kong on insurance. The Company shall pay insurance indemnities after deducting the Company’s expenses (other than the Commission) to the Seller after the Company obtains such indemnities from the insurance company.

Article 19 Bidding Prohibition

The Seller shall not bid for the Lot consigned to the Company by himself/herself/itself for auction, or authorize any other person to bid on his/her/its behalf. Only the Company has the right to bid on behalf of the Seller at a price not more than the Reserve. The Seller shall bear all legal liabilities and compensate for all losses caused to the Company if the Seller violates this Article.

Article 20 Commission and Expenses

Unless otherwise agreed upon by the Seller and the Company, the Seller shall authorize the Company to deduct 10% of the Hammer Price as Commission and at the same time deduct other expenses. Despite the fact that the Company is the Seller’s Agent, the Seller agrees that the Company may collect the Commission and other expenses from the Buyer in accordance with the provisions in Article 49 hereof.

Article 21 Service Fee for Unsold Lot

In case the Lot is not sold because the bidding price is lower than the Reserve, the Seller shall authorize the Company to charge the Seller a service fee for unsuccessful auction and other expenses.

Article 22 Payment of Proceeds of Sale

Where the Buyer effects full payment of the Purchase Price to the Company in accordance with the provisions in Article 49 hereof, the Company shall pay the Proceeds of Sale to the Seller thirty-five days after the Sale Date in Hong Kong dollars.

Article 23 Deferred Payment

Where the Company does not receive the full payment of the Purchase Price from the Buyer upon the expiry of the payment period under Article 51 hereof, the Company will pay the Proceeds of Sale to the Seller within seven working days after receipt of full payment of the Purchase Price from the Buyer.

Article 24 Seller Taxes

The Seller shall pay taxes to the government for the Proceeds of Sale obtained. If the Company has an obligation to withhold and pay taxes according to the provisions of the relevant laws, the Company will follow the provisions of the laws. The Seller shall assist in handling all the formalities and bear the corresponding taxes and expenses.

Article 25 Assistance in the Collection of Outstanding Payment

The Seller shall, at the time of its consignment of the Lot to the Company for auction, be deemed to have authorized the Company to demand the corresponding outstanding payment from the Buyer on behalf of the Seller. Where the Buyer fails to fully pay the Purchase Price within seven days after the Sale Date (including the Sale Date), the Company shall have the right to demand the Commission and other Buyer’s Expenses according to the provisions of Article 58 hereof. In addition, the Company shall as well have the right to take appropriate actions (including but not limited to resorting to legal proceedings) to assist the Seller in collecting such outstanding payment from the Buyer where it is deemed by the Company to be practicable. The above provision does not exclude the Seller’s right to demand in person or authorize any third party to demand the outstanding payment from the Buyer and does not obligate the Company to demand the corresponding outstanding payment from the Buyer on behalf of the Seller under any circumstance. This Company shall not bear the corresponding liability for the Seller because of the Buyer’s failure to pay the Purchase Price under any circumstance.

Article 26 The Company's Discretion

The Company shall have the right to accept the Seller’s authorization (at the Seller’s expenses) and may determine the following matters as the case may be:

1. To agree on special conditions of the payment of the Purchase Price;
2. To remove, store and insure the sold Lot;
3. To settle claims brought by the Buyer or the Seller in accordance with the relevant articles hereof; and
4. To take other necessary measures to collect the outstanding payment owed by the Buyer to the Seller.

Article 27 Unsold or Uncollected Lot

1. In the event that the Lot is not sold, the Company may re-negotiate with the Seller on the revised Reserve and sell the Lot in private sale, and pay the Seller the Proceeds of Sales adjusted based on the revised Reserve.
2. The Company will send the Seller a notice if any Lot fails to sell at auction or privately pursuant to 1 above. Subject to 27.1 above, unsold Lots may either be consigned to the Company for re-sale according to the Commission and expenses scale set out in the previous consignment auction contract or, alternatively, collected by the Seller. If the Seller decides to collect an unsold Lot, the Company may charge the Seller the commission and expenses applicable to unsold Lots in accordance with the consignment auction contract.
3. If the Seller fails either to reconsign or collect the Lot within thirty (30) days of the auction, the Company is released from any duty of bailment it may have for such Lot and shall, in its sole discretion, be entitled to (i) store the Lot at an independent storage facility at the Seller’s risk and expense including the Storage Fee, insurance fees and other reasonable expenses; or (ii) re-offer the Lot for sale at public auction (at the Company or elsewhere) with a reserve no less than fifty per cent (50%) of the Reserve at which it was previously offered.
4. In the event of re-sale pursuant to 3(ii) above, the Company shall be entitled to deduct the commissions and expenses for the unsuccessful auction in accordance with the consignment auction contract as well as the commissions and expenses for the re-sale from the Proceeds of Sale before paying the remaining amount to the Seller.
5. In the event a Lot has been deposited with the Company for more than one year and the owner has neither collected it nor consigned it for sale, the Company shall be entitled to sell such property at auction (at the Company or elsewhere) after sixty (60) days notice of such sale to the owner’s address, with estimates and reserves at the Company’s discretion.
6. Any re-sale of unsold Lots or sale of uncollected Lots shall be conducted under these Conditions of Business applicable to the relevant auction. The proceeds of such sale less all costs incurred by the Company will be forfeited unless collected by the Seller within two years of the sale.

Article 28 Risk Assumption

The Seller shall assume liability for all risks and expenses that occur after the time limit prescribed herein if the Seller fails to take back the Lot not auctioned or the unsold Lot within such the time limit. The Seller shall assume liability for all risks and expenses of the Lot not auctioned or the unsold Lot at the earlier of the thirtieth day after the Company issues notice on collection of the Lot to the Seller (including the notice date) and the time when the Seller collects the Lot in accordance with these Conditions of Business. Where the Seller requests Company to assist it in the return of the Lot within the time limit provided herein and the Company so agrees, the Seller shall assume liability for all risks and expenses that occur after the Lot leaves the place designated by the Company. Unless the Seller specifically gives an indication and pays insurance premium in advance, the Company has no obligation to ensure the Lot for any period after it departs from the place designated by the Company. Where the Seller requests the Company to assist it in returning the Lot by means of post, express delivery or other third-party transportation, the Company shall be deemed to have returned the Lot, and the Seller shall be deemed to have collected the Lot upon the Company’s delivery of the Lot to the post, express delivery and transportation entities, companies or their employees/branch offices.

Chapter III The Bidder and the Buyer

Article 29 Responsibilities of the Bidder and the Company in respect of the Lot

1. The Company's perception of all Lots partly relies on the information provided by the Seller, the Company is unable and will not carry out comprehensive inspection of all Lots. Bidders are aware of this and bear the responsibilities of inspecting and testing the original Lots so that Bidders will be satisfied with those Lots in which they may be interested.
2. All Lots for sale by the Company are available for viewing by Bidders. By bidding, Bidders and/or their agents are deemed to have carried out thorough examination of the Lots, and are deemed to be satisfied with the conditions of the Lots and the accuracy of their description.
3. Bidders acknowledge that various Lots are dated long time ago and of special categories, implying that the Lots are not perfect and not free from defects. All Lots are sold on an“as is” basis at the time of the auction (whether or not Bidders attend the auction). Condition reports may be provided when during the viewing period. Under certain circumstances, catalogue descriptions and condition reports may be used for reference about certain defects of the Lots. Nevertheless, Bidders should pay attention that the Lots may have other defects not clearly stated in the catalogue descriptions and condition reports.
4. Regarding the information about the Lot provided to Bidders, including any forecast information (written or verbal), catalogues and other reports, commentaries or estimated values, such information are not statement of facts, but rather are statements of the opinion that the Company holds. Such information can be altered at the sole discretion of the Company from time to time.
5. The Company or the Seller has not made any declaration or warranty as to whether any Lot is subject to any copyright or whether the Buyer has bought the copyright of any Lot.
6. In accordance with the matters contained in Article 29 (1) to 29 (5) of the Conditions of Business and the special exemption contained in Article 30 of the Conditions of Business, the descriptions in the catalogue and in the condition reports are written in a reasonably prudent manner (and such should be in line with those terms of the Conditions of Business regarding the Company serving as Auction Agent) based on (1) the information provided by the Seller to the Company; (2) academic and technical knowledge (if any); and (3) generally accepted opinions of the relevant experts.

Article 30 The Company's Exemption and Restriction of Responsibilities to the Buyer

1. If the Company considers the Lot as forgery, it shall return the Hammer Price and Buyer's Commission to the Buyer.
2. Subject to the matters contained in Article 29 of the Conditions of Business and the rules in Article 30 (1) and 30 (5) of the Conditions of Business, the Company shall not:
   1. be responsible for any errors or omissions in the information provided by the Company to the Bidder verbally or in writing, no matter whether this is caused by negligence or other reasons, with the exception of provision contained in Article 29 (6) of the Conditions of Business;
   2. make any guarantee or warranty to the Bidder, excluding any implied warranty and rules other than the expressed warranty that the Seller has entrusted the Company to make to the Buyer (with the exception of those responsibilities that cannot be discharged according to the stipulations of laws);
   3. be accountable to any Bidder for any actions or omissions of the Company regarding the auction or the sale of any Lot (no matter whether this is caused by negligence or other reasons).
3. Unless the Company owns the Lot to be sold, it shall not be responsible for any breach of the Conditions of Business by the Seller.
4. Without affecting Article 30 (2) of these rules, any claim for compensation that the Bidder makes to the Company or the Seller shall be limited to the Hammer Price and the Buyer's Commission of the Lot. Under no circumstances shall the Company and the Seller bear any consequential losses incurred by the Buyer.

Article 31 Catalogue and other Explanation of the Lot

The Company shall prepare a catalogue of the Lot to briefly introduce the conditions of the Lot with words and/or pictures to facilitate the Bidder and Seller to participate in the auction held by the Company. The words and Estimate in the catalogue of the Lot, pictures, other images as well as public materials are only references for the Bidder and may be revised before auction. The Company provides no guarantee for the authenticity, value, tone, quality or flawlessness of the Lot.

Article 32 Uncertainty of Catalogue

Where the tone, color, graduation shape or any other feature of the Lot shown in the catalogue and/or any other illustrations, images and public materials differ from those of the original Lot due to printing, photography or other technical reasons, the original Lot shall take precedence. Any introduction and appraisal of any Lot made by the Company and its employees or its agents in anyway (including the certificate, catalogue, slideshow and news media) are only opinions for reference and do not constitute any guarantee for the Lot. The Company and its employees or its agents shall undertake no liability for any inaccuracy or omission in the aforesaid introduction or appraisal.

Article 33 Reserve and Estimate

Unless otherwise indicated, all Lots are offered subject to a Reserve. Normally, the Reserve is not higher than the lowest Estimate announced before the auction or published before the auction by the Company. If a Reserve has not been set for a Lot, unless there has already been bidding, the Auctioneer, in his or her discretion, may determine the starting price, but this shall not be higher than the lowest Estimate of the Lot before the auction. Under no circumstances shall the Company bear any liability when the bids for a Lot do not reach the Reserve. If the bids are lower than the Reserve, the Auctioneer, in his or her discretion, may sell the Lot at a price lower than the Reserve. However under such circumstances, the amount that the Company shall pay the Seller shall be the amount that the Seller would receive as if the Lot was sold at the Reserve. The Estimate is estimated at an earlier time before the Auction Date, it is not a confirmed selling price, and is not legally binding. Estimates cannot be used as a forecast of the Hammer Price of the Lot, and the Company has the right to revise from time to time the Estimate already made.

Article 34 Bidders' Inspection Responsibility

The Bidder and/or his/her/its agents shall have the responsibility to learn about the actual conditions of the Lot and shall be legally liable for his/her/its bid for a certain Lot. The Company strongly advises the Bidders to personally inspect the original Lot they intend to bid for before the Auction Date by authentication or other means. Bidders shall judge by themselves whether Lot complies with the descriptions in the Company's catalogue of the Lot and other images and public materials, rather than relying on the catalogue, images and public materials to make decisions.

Article 35 Registration of Bidders

If the Bidder is a natural person, before the Auction Date, he/she shall fill in and sign the registration documents with an identity document with photo issued by the government (such as resident identity card or passport), and provide proof of the current address (e.g. utility bill or bank statement); if the Bidder is a company or other organization, before the Auction Date, it shall fill in and sign the registration documents and collect a paddle with its valid certificate of incorporation and proof of shareholding and legitimate authorization document. The Company may request the Bidder to present proof of bank details or other proof of financial conditions for payment purposes.

Article 36 Paddle

The Company can announce before the Auction Date the conditions and procedures of arranging paddle for the Bidder according to different auction conditions and auction methods etc., including but not limited to the qualification and conditions for the Bidder to arrange a paddle.

Article 37 Auction Deposit

When a Bidder participates in an auction of the Company, he/she shall first pay the auction deposit before collecting the paddle. The amount of the auction deposit will be announced by the Company before the Auction Date, and the Company has the right to waive the auction deposit. If the Bidder fails to buy the Lot and he does not owe the Company any sum, then that auction deposit shall be returned to the Bidder in full without interest within 14 working days after the end of the auction. If the Bidder succeeds in buying a Lot, the auction deposit shall automatically be converted to the payment of the Purchase Price of the Lot.

Article 38 Discretion of the Company

The Company has the right to forbid anyone from participating in the auction organized by the Company or entering the auction site, or taking pictures or shooting videos at the auction site at its discretion.

Article 39 Handling of Abnormal Events

If any abnormal event occurs at the auction site, the Company has the right to take emergency actions. If any dispute arises at the auction site, the Company has right to mediate and settle it.

Article 40 Confirmation of Buyer's Identity

The Bidder must take good care of his/her/its paddle and be cautious not to lose it. The Bidder shall not lend his/her/its paddle to others, or the Bidder shall assume all legal liability for others' act of bidding for the Lot using his/her/its paddle.

Article 41 Absentee Bids

Bidders shall attend the auction in person. If a Bidder or its agent cannot attend in person, it can appoint the Company in writing for the Company to bid on its behalf. The Company has the discretion to accept or not accept the above appointment. Any Bidder who has appointed the Company to bid shall handle the appointment formalities within the period stipulated (no later than three business days), and produce a completed Absentee Bid Order to the Company, and at the same time pay the auction deposit according to the Conditions of Business. If the Bidder who has appointed the Company to bid needs to cancel the absentee bid, it shall notify the Company no later than 24 hours before the Auction Date.

Article 42 Auction Results of Absentee Bid

If a Bidder who has appointed the Company to bid, the auction results and the related legal responsibilities shall be borne by the Bidder.

If the Bidder indicates in the Absentee Bid Order that it bids by instant communication methods such as telephone, it shall fill in the instant communication method accurately and keep the instant communication instrument properly, during the period in which the Company is appointed to bid, the Bidder shall use that instant communication instrument itself. Where the instant communication instrument is lost or it cannot be within control, the Bidder shall immediately use a written form recognized by the Company to change the instant communication method filled in the Absentee Bid Order. During the period the Company is appointed to bid, it shall make appropriate efforts to contact the Bidder, the bidding information transmitted by that instant communication instrument (whether or not it is transmitted by the Bidder personally or the Bidder's agent) shall be considered as transmitted by the Bidder itself, and the Bidder shall bear legal responsibilities for the actions taken by it. Unless the Buyer itself has changed the instant communication method filled in the Absentee Bid Order by a written method recognized by the Company. All telephone bids may be recorded and kept at Poly Auction (Hong Kong)’s sole discretion, by opting for telephone bids, the Bidder agrees that its phone conversation will be recorded.

Nevertheless, under no circumstances shall the Company be responsible for any unsuccessful contact or errors or omissions in the bidding process using that instant communication instrument.

Article 43 Disclaimer of Absentee Bid

Since absentee bid is a free service of transmitting bidding information that the Company provides to the Bidder, the Company and its employees shall not bear any responsibilities for unsuccessful bidding or any errors, omissions, negligence, fault or inability to bid on its behalf during the bidding process.

Article 44 First-come-first-serve Principle for Absentee Bid

If two or more Bidders appointing the Company to bid on their behalf have bid the same price for the same Lot and eventually that Lot is sold at that Hammer Price, then the one who first submitted to the Company shall be the Buyer of that Lot.

Article 45 Discretion of the Auctioneer

The Auctioneer has the right at his absolute and sole discretion in the following matters:

1. Refusal or acceptance of any bid;
2. Carrying out the auction in such a manner as he may decide;
3. Withdrawal of any Lot, dividing it for auction separately, combining any two or more Lots for auction;
4. If there are errors or disputes, no matter if they occur during or after the auction, he shall have the right to decide the successful Bidder, whether or not to continue the auction, to cancel the auction or place the Lot under dispute for auction again;
5. The Auctioneer may open and carry out the bidding at a level with bidding increments that he considers suitable, and has the right to bid on behalf of the Seller up to the amount of the Reserve, either by placing consecutive bids or by placing bids in response to other Bidders;
6. Adoption of other actions that he considers as appropriate.

Article 46 No Reserve

For those Lots without a Reserve, unless there has already been bidding, otherwise the Auctioneer, under his own discretion, may decide the starting price. If there is no bidding at such a price, the Auctioneer will, at his own discretion, lower the price and continue the auction until a Bidder starts to bid, then he will continue the auction at that price and then continue up from that amount.

Article 47 Image Display Board and Currency Conversion Board

To facilitate Bidders, the Company may use image projector or other forms of display boards in the auction. The contents shown are for reference only. It is possible that there are differences in the information such as the amount, reference number of the Lot, images of the Lot or reference foreign currency etc. shown in the image projector or other forms of display boards and the Company shall not bear any responsibilities for any losses caused by such differences.

Article 48 Successful Bid

The fact that the Auctioneer confirms the highest bid of a Bidder by striking his/her hammer or in any other manner of publicly confirming the sale shall indicate the conclusion of a sales contract for the Lot between the Bidder and the Seller.

Article 49 Commission and Expenses

After the Bidder has succeeded in bidding, it will become the Buyer of that Lot. A buyer’s premium will be added to the Hammer Price and is payable by the buyer as part of the total purchase price. The buyer’s premium is 20% of the hammer price of each lot and at the same time other Buyer’s Expenses, and recognizes that the Company can charge the Seller the commission and other Seller expenses according to provisions of the Consignment Agreement.

Article 50 Taxes

All the monies that the Buyer pays to the Company are net amounts, which shall not include any tax on goods, tax on services or other value added tax (whether levied by Hong Kong or other regions). If there is any tax applicable to the Buyer, the Buyer shall bear it itself according to the provisions of the relevant laws currently in force.

Article 51 Payment Time

After the Lot is successfully sold in an auction, unless otherwise agreed, regardless of any stipulations of the export, import or other permits of the Lot, the Buyer shall fully pay the Purchase Price within 7 days after the Sale Date (including the Sale Date), and collect the Lot. If packing, moving costs, and insurance expenses, expenses related to export are involved, the Buyer shall pay them altogether.

Article 52 Payment Currency

All monies shall be paid in Hong Kong dollars. If the Buyer pays in another currency other than Hong Kong dollars, it shall convert it at the exchange rate agreed between the Buyer and the Company or at the exchange rate of Hong Kong dollars and that currency type on the previous working day announced by such bank as selected by the Company. All bank handling fees, commission and charges incurred by the Company for converting the foreign currency paid by the Buyer into Hong Kong dollars shall be borne by the Buyer.

Article 53 Transfer of Ownership

Even if the Company has delivered the Lot to the Buyer, the Buyer has not yet obtained the ownership of the Lot. This shall pass onto the Buyer only when the Buyer has fully paid the Purchase Price and all monies that the Buyer owes the Company.

Article 54 Transfer of Risks

After the bidding has succeeded, the risks ofthe Lot shall be borne by the Buyer itself after the occurrence of one of the following events (whichever earlier):

1. The Buyer has collected the Lot; or
2. The Buyer has fully paid the Purchase Price for the Lot to the Company; or
3. The expiry of seven days after the Sale Date (including the Sale Date).

Article 55 Collection of the Lot

Risk and responsibility for the lot passes to the Buyer at the expiration of thirty calendar days from the Sale Date (including the Sale Date). or on collection by the Buyer, if earlier. After thirty calendar days, all expenses incurred, including but not limited to storage, moving, insurance will be for the account of the Buyer. Although the Company shall use reasonable efforts to take care of purchased Lot and suggest handlers, packers or carriers, the company is not responsibleto any person to whom we have made are commendation for the acts or omissions of the third party concerned.

Article 56 Packing, Handling and Moving

If the employees of the Company pack and handle the Lot bought on behalf of the Buyer according to the latter's requirements, this is considered as a service provided by the Company to the Buyer and the Company has the discretion to decide whether to provide this service, if any losses arise therefrom, the Buyer shall bear them itself. Under no circumstances shall the Company be responsible for any damage of the glass or picture frame, box, backing sheet, frame case, mounting, inserts, rolling rod or similar auxiliary objects caused by any reasons.

Where the Buyer requests the Company to assist it in collecting the purchased Lot (the packaging, mailing and transportation expenses shall be paid by the Buyer) by means of post, express delivery or transportation, the Company shall be deemed to have delivered the Lot and the Buyer shall be deemed to have collected such Lot according to the normal procedure upon the Company's delivery of the Lot to the post, express delivery and transportation entities, companies or their employees/branch offices. The risks arising from this process shall be borne by the Buyer. Unless Buyer gives a clear indication and pays insurance premium, no insurance is provided in the process of mailing, express delivery or transportation generally.

The Company shall undertake no liability for any error, omission, damage or destruction caused by the packaging company and post, express delivery and transportation entities or companies designated by the Buyer or recommended by the Company to the Buyer.

Article 57 Import, Export Licenses and Permit

The Buyer shall be responsible for obtaining any import and export licenses, permit for endangered animals or other aspects related to the Lot. Failure or delay in obtaining any permits required shall not be deemed as a reason for cancelling the purchase or delaying in paying the Purchase Price. The Company shall not bear any responsibilities for the failure to properly fill in or submit the required import or export documents.

If the Buyer requests the Company to apply for the import and export licenses on its behalf, the Company has the right to charge service fees for this service. However, the Company does not warrant that the import or export license will be issued. The Company and the Seller has not made declaration or warranty in respect of whether or not any Lot is subject to import and export restrictions or any embargo.

Article 58 Remedies for Non-Payment

If the Buyer fails to make full payment according to the provisions of the Conditions of Business or any payment arrangements agreed with the Company, the Company has the right to adopt one or more of the following measures:

1. After the Lot is sold, if the Buyer fails to pay the Purchase Price within 7 days from the Sale Date (including the Sale Date), the auction deposit paid at the time of bidding registration shall not be refunded, and it shall at the same time bear the relevant responsibilities according the provisions of the Conditions of Business; if the Buyer has bought a few Lots with the same paddle, after the Lots are sold, if the Buyer has not paid the Purchase Price of any of the Lots within the time stipulated, then the entire auction deposit shall not be refunded, and it shall at the same time bear the relevant responsibilities according the provisions of the Conditions of Business;
2. If the Buyer fails to pay the Purchase Prices in full to the Company within 7 days from the Sale Date (including the Sale Date), the Company has the right to appoint a third party organization to collect the entire or part of the Purchase Prices that the Buyer owes;
3. If the Buyer fails to pay the Purchase Price in full within 7 days from the Sale Date (including the Sale Date), the Company has the right to charge interest at 0.03% per day on the unpaid portion starting from the 8th day after the Sale Date until the day on which the Buyer has fully paid the monies, with the exception that the Buyer has otherwise agreed with the Company;
4. The Buyer shall bear the risks and expenses of taking out an insurance policy, moving and storing the Lot in the Company or other places;
5. To sue the Buyer, demand for compensation for all the losses due to the breach of contract by the Buyer including the interest loss caused by the delay in payment or refusal to make payments by the Buyer;
6. To retain that or any other Lot that the same Buyer has bought via the Company, and any other properties or rights to property of the Buyer that the Company holds for any reasons, all the expenses and/or risks incurred during the retention period shall be borne by the Buyer. If the Buyer fails to perform all its duties concerned within the period specified by the Company, the Company has the right to issue a lien notice to the Buyer and dispose of the items under lien if the Buyer has not yet fully paid all outstanding amounts within 30 days after the issue of that notice. if the items under lien are insufficient to offset all the monies payable by the Buyer to the Company, the Company has the right to claim them;
7. The Company has sole discretion to cancel the sale or agree that the Consignor can cancel the deal, and reserve the right to claim all the losses suffered by the Company due to the cancellation of that deal;
8. The Company can place the Lot for auction again or sell it by other means according to the provisions of the Conditions of Business with the consent of the Seller, and the Company reserves the right to decide the Estimate and Reserve. The original Buyer shall pay the commission and other Buyer’s Expenses and the Seller in the first auction, and it shall bear all the costs of the second auction or the sale of the Lot by other means. If the price obtained from the second auction or the sale of the Lot by other means is lower than the original auction sum, the original Buyer shall pay the shortfall;
9. To offset any monies related to the Lot that the Buyer owes the Company by any sums that the Company owes the Buyer in any other transactions;
10. The Company can decide to use any monies paid by the Buyer to repay any sums that the Buyer owes the Company in any other transactions;
11. To reject any bids made by the Buyer or its agent at future auctions, or to obtain auction deposit before accepting any bids;
12. To disclose the information of the Buyer to the Seller, so that the Seller can start a law suit to recover the outstanding amount, or claim damages and claim legal fees for the breach of contract by the Buyer.

ARTICLE 59 REMEDIES FOR DELAY IN COLLECTING THE LOT

If the Buyer fails to collect the purchased Lot 7 days after the Sale Date (including the Sale Date), the Company has the right to adopt one or more of the measures below:

1. All costs (including but not limited to the storage fee calculated and charged according to the provisions of the Bidder Registration Order starting from the 31st day from the Sale Date (including the Sale Date) and/or risks for the taking out of an insurance policy and/or storing the Lot in the Company or other places shall be borne by the Buyer. Only after the Buyer has paid the full amount of the Purchase Price, it can collect the Lot (packing and moving costs, insurance expenses, expenses related to export shall be at the Buyer's expense);
2. The Buyer shall bear all the risks and expenses incurred after the deadline as stated in the Conditions of Business if it cannot collect the Lot concerned within that deadline. If the Buyer has not yet collected the Lot within 30 days from the Sale Date (including the Sale Date), after notifying the Buyer, the Company has the right to sell that Lot in a public auction or by a method and with methods and conditions that it considers suitable. Any proceeds after the deduction of all the losses, expenses (packing & moving costs, insurance costs, expenses related to export, Storage Fee, and notarial expenses etc.) incurred by the Company from the disposal shall be taken back by the Buyer; such balance is non-interest-bearing. If the Buyer fails to take the proceeds back two years after the Sale Date, the balance shall be deposited to a Hong Kong court by the Company after deducting the relevant expenses (including legal fees).

Article 60 Limited Warranty

1. The Company provides general warranty to the Buyer: If the Lot sold by the Company is later found to be a counterfeit, the Company will cancel that deal according to the terms of the Conditions of Business, and will return to the Buyer in the currency of the original deal the Hammer Price together with the Buyer's Commission that the Buyer has paid to the Company for the Lot. In this regard, based on the reasonable opinion of the Company, counterfeits refer to frauds in various aspects such as the source, place of origin, date, production year, duration, culture or sources etc. of the article, and the correct description of the above points have not been recorded in the contents of the catalogue (any special terminologies are taken into consideration). Any damage and/or any type of restored item and/or repaired items (including repaintingor painting on top of it) of the Lot shall not be considered as counterfeit. Please pay attention that if any of the following situations happens, this warranty shall not apply; The contents of the catalogue are based on generally accepted opinion of academics and specialists on the selling date, or contradictions in opinions are shown in the contents of the catalogue; or On the selling date, the only method of proving the Lot is a counterfeit is not a method which can be used in general; which is recognized; which is extremely high price; the usage of such method is impractical; or this method may have caused damage to the Lot or may (according to the reasonable opinion of the Company) have already caused the Lot to lose value; or If the Lot has not lost any material value from the description of the Lot.
2. The deadline in this warranty is 5 years fromthe Auction Date concerned, these benefits are exclusively enjoyed by the Buyer, and shall not be transferred to any third party. In order to make claims based on this warranty, the Buyer shall:-(1) notify the Company in writing within one month after the receipt of any information which leads the Buyer to doubt the authenticity or attributes of the Lot, specifying the reference number of the Lot, date on which the Lot is purchased and reasons for which it is considered as counterfeit; (2) return the Lot to the Company in the same conditions as it was on the date of sale, and the proper ownership of it is transferrable, plus there are no claims from any third party after the Sale Date.
3. Regarding Southeastern Asian modern and contemporary art, Chinese painting and Chinese calligraphy and Chinese ink painting, although at present the academic sector does not permit the making of definitive statements, the Company reserves the discretion to cancel those deals of Lots which are proved to be counterfeit southeastern Asian modern and contemporary arts, Chinese painting and Chinese calligraphy and Chinese ink paintings within one year after the Auction Date based on this warranty. Paid sums shall be returned to the Buyer according to this term, however the Buyer shall provide evidences (based on the methods provided forin clause 2 and 4 of this article) to prove that the Lot is counterfeit within one year from the Auction Date;
4. The Company can, at its discretion, decide to waive any of the above provisions. The Company has the right to demand from the Buyer two independent specialist reports which are recognized by the specialist sector concerned and which are accepted by the Company and the Buyer at the expense of the Buyer. The Company shall not be subject to any report presented by the Buyer, and retains the right to seek additional expert opinion at the expense of the Company.
5. This limited warranty does not apply to auction categories, such as, jewelry, watches, designer handbags, alcohol, tea and other food and beverage items, etc.

Article 61 Special Categories

1. Statements about the status of jewellery items in the auctions are usually set out in the catalogue. However, it does not imply that the auctioned item has no defects, flaws or has not enhanced beautification after processing.
   1. Coloured gems (such as rubies, sapphires, emeralds and various coloured gems) may enhance beautification after processing or improved in appearance, including heat-treated, oiling and radiation. These common practises have been approved by the international jewellery industries. However, the hardness of the treated stones may be reduced and / or need special maintenance in the future.
   2. Our Company will not apply appraisal report from professional organisations for each piece of jewellery item in the auction. If an auctioned item has obtained the appraisal report from an internationally recognised gem laboratory, the Company will specify it in the auction catalogue. Due to the difference in methods and techniques used in different laboratories, there may be different views as to whether a gemstone has been treated, degree of treat or permanently treated. Our Company will not be responsible for the accuracy of the appraisal report issued by each laboratory.
   3. If you would like to request an appraisal report by a specific laboratory, please submit the request at least 14 working days before the auction date, the Company will apply for appraisal report on behalf of you, and the corresponding appraisal costs will borne by you.
   4. The valuation of an item of jewellery item in the auction is made based on all information being known at the time the item being auctioned, bidders should review the auctioned item or make a detailed understanding of the auctioned item before the auction. Once you have placed a bid, it is deemed that you have accepted all the current status of the auctioned items.
   5. Our Company reminds bidders that precious stones or emerald originating from Myanmar may be banned in certain countries.
2. Watches and Timepieces Auctioned items
   1. Our Company has stated that the current status of a watch and timepieces auctioned items being known on the auction catalogue, and is for bidder's reference only. Due to the fact that most timepieces have been repaired and maintained during the previous period being used, we do not guarantee that any parts and components of any watch are original, and it is possible that no pendulum, clock hammers or keys are for available for sale.
   2. Watches and timepieces generally have a very sophisticated mechanical manufacture that may require general warranty service, battery replacement or further repair works, and these will be all at the buyer's disposal. Our Company does not guarantee that any auction of watches is in good working condition. Unless mentioned in the catalogue, otherwise we do not provide a certificate.
   3. Most watches have been opened to check the movement of the models and their quality, so with a waterproof case may not contain waterproof function, our Company recommends that you to ask a professional watch maker to check before use.

Chapter IV Miscellaneous

Article 62 Obtaining Information, Video-Taking

In connection with the operation of the auction business of the Company, the Company may make audio recording, video recording of any auction process, and need to collect personal information from the Bidder or ask for the information of the Bidder from third parties (such as asking for credit review from banks). Such information will be handled and kept confidential by the Company. However the information concerned may be provided to the Company, its divisions, affiliates and subsidiaries in order to assist the Company to provide comprehensive services to Bidders, carry out client analysis, or in order to provide services that meet the requirements of the Bidder. For the sake of the interest of the Bidder, the Company may also provide some personal information of the Bidder to third party service providers (such as cargo liners or storage houses). By participating in the auction of the Company, the Bidder agrees to all previously stated disclosure. If the Bidder would like to obtain or amend his personal information, please contact the customer service department.

Article 63 Confidentiality

The Company shall be obligated to keep confidentiality for the Seller, the Bidder and the Buyer and protect the legitimate rights of the Seller, the Bidder, the Buyer as well as the Company according to these Conditions of Business and the laws of Hong Kong. With below exceptions:

1. To any related parties as the Company considers appropriate with the obligations to maintain the confidentiality of the information extended;
2. To whom information is requested to be disclosed by any court, jurisdiction, governmental, banking, taxation or other regulatory authority, or by any applicable law or regulation;
3. Being agreed by relevant seller, bidder or buyer.

Article 64 Authentication Right

The Company may authenticate the Lot if necessary. In case of any discrepancy between the authentication conclusion and the conditions of the Lot in the consignment auction contract, the Company shall have the right to request modification or rescission of the consignment auction contract.

Article 65 Copyright

The Seller authorizes the Company to produce photos, illustrations, catalogue, video products and advertising materials in other forms of the Lot that it has appointed the Company to place for auction, the Company is entitled to the above photos, illustrations, catalogue, video products and advertising materials in other forms of the Lot, and has the right to use them. Without prior written consent of the Company, the Buyer and anyone shall not use them. The Company and the Seller have not made any statement and warranty as to whether the Lot is restricted by copyright or if the Buyer has obtained any copyright of the Lot.

Article 66 Exemption from Liability

Being an agent of the Seller, the Company shall assume no liability for any breach of contract by the Seller or the Buyer. In case of the breach of contract by the Seller or the Buyer, the Company shall have the right to decide to disclose the other party's name and address to the Seller or the Buyer at its own discretion so that the damaged party may receive compensation for damages through legal proceedings. However, prior to the Company's disclosure of such materials to the Seller or the Buyer, the Company shall take the reasonable steps to notify the party whose materials are to be disclosed.

Buyers and sellers have to bear liabilities arisen from transactions including but not limited to, economic, legal, tax and settlement and other related responsibilities, and have to ensure transactions not relate to money laundering or other illegal benefit transfers. Any receive or payment instruction must be clear and direct, the Company shall assume no liability for losses arisen from account stolen, misappropriation of funds and other unforeseen circumstances resulting from mismanagement of sellers or buyers.

Article 67 Notice

The Bidder and the Buyer shall inform the Company their permanent and effective correspondent address and contact methods in the bidding registration documents or by other methods recognized by the Company. If there are changes, they shall inform the Company in writing immediately.

The notices mentioned in the Conditions of Business only refer to written notices sent by letter or fax formats. A notice shall be deemed as served at the following moment:

1. If it is served by hand, when it reaches the address of the party concerned;
2. If it is sent by post, then it is the seventh day after it is posted;
3. If it is sent by fax, then it is the moment the outgoing fax transmission is confirmed by the fax machine.

Article 68 Severability

If any terms or parts of the Conditions are confirmed as void, illegal or cannot be executed, other terms or parts of the Conditions are still valid, the parties concerned shall abid by and execute them.

Article 69 Laws and Jurisdiction

The Conditions of Business and the related matters, transactions, any disputes caused by or in connection with the participation in the auction activities of the Company pursuant to the Conditions of Business shall be subject to Hong Kong laws and shall be interpreted by Hong Kong laws. The Company and the Buyer and the Bidder shall submit to the exclusive jurisdiction of Hong Kong courts. Adjudication(s) promulgated by Hong Kong courts on any disputes arising from the Conditions of Business and related matters can be enforced in People's Republic of China.

Article 70 Language

The Chinese version of the Conditions of Business shall be the standard texts; the English version is for reference only.

Should there be any discrepancy between the English version and Chinese version, the Chinese version shall prevail.

Article 71 Ownership of the Copyright of the Conditions

The Conditions of Business is prepared and revised by the Company, the copyright concerned belongs to the Company. Without the prior written approval of the Company, no one shall use any methods or means to use the Conditions of Business to obtain business benefits, and shall not make duplication, of any parts of the Conditions of Business.

Article 72 Applicable Period

The Conditions of Business is only applicable for this auction. The Company may update the Conditions of Business from time to time, when the Bidder and the Buyer participate in another auction, the then applicable Conditions of Business shall prevail.

Article 73 Right of Interpretation

The right of interpretation of these Rules shall belong to the Company.

Important Notices

The auctions held by Poly Auction (Hong Kong) Limited (“Poly Auction (Hong Kong)”or“our company”) are conducted according to the Conditions of Business, Important Notices, Important Notices about Bidding Registration, Important Notice about Payment and Important Notice about Storage Collection Shipping and Export, and anyone participating in the auction should read the terms carefully. These Conditions and rules may be revised by announcement or verbal notification without prior notice.

The following pages are designed to give you useful information on how to bid at auctions. Poly Auction (Hong Kong)’s staff as listed at the front of this catalogue will be happy to assist you. However, it is important that you read the following information carefully and note that Poly Auction (Hong Kong) acts for the seller.

Provenance

In certain circumstances, Poly Auction (Hong Kong) may print in the catalogue the history of ownership of a work of art if such information contributes to scholarship or is otherwise well known and assists in distinguishing the work of art. However, the identity of the seller or previous owners may not be disclosed for a variety of reasons. For example, such information may be excluded to accommodate a seller’s request for confidentiality or because the identity of prior owners is unknown given the age of the work of art.

Buyer's Premium

A buyer’s premium will be added to the Hammer Price and is payable by the buyer as part of the total purchase price. The buyer’s premium is 20% of the hammer price of each Lot up.

Conditions of the Properties

Bidder must review the Lot(s) in the preview before the auction, and bear all responsibilities (including but not limited to legal liability and/or responsibility) of their bidding acts. For more information on the Properties, please consult our business staff. If the conditions of a Property are not described in the catalogue, this does not mean that the Property has no weakness or defects.

Restricted materials

Properties with a ▲ symbol have been identified to be made of or containing restricted materials at the time of the compiling of the catalogue, and the materials concerned may be subject to import and export restraints. Properties without this symbol it is not guaranteed that Properties are not subject to import and export restraints. For items made of botanic or animal materials (coral, crocodile, ivory, whalebone, tortoise, rhinoceros horn and Brazilian Rosewood, etc.) or containing botanic or animal materials, regardless of their year or value, may require an application for permits or certificates before exporting outside Hong Kong, and other application for permits or certificates may be required when importing into countries outside Hong Kong. Please pay attention that the ability to obtain export permits or certificates does not ensure that import permits or certificates can be obtained in another country and vice versa. For example, importing ivory for fewer than 100 years is illegal in the USA. Bidders should enquire about the import regulations on products made of or containing wild animals and plants materials of the governments concerned before participating in an auction. Buyers must be responsible for obtaining any export or import permits/or certificates and any other documents required.

Electrical appliances and mechanical merchandises

All electrical appliances and mechanical merchandise are sold on an “as is” basis, and should not be assumed that they operate. Before putting into any use, electrical appliances must be inspected and approved by qualified electric technicians.

Jewellery, Watches and Handbags

Description of the conditions of Jewelry Lot(s) usually contained in the catalogue, however, absence of a description does not imply that the Lot(s) is free from defects or imperfection or beautification process. Beautification processes of coloured gemstones, such as heat enhancement, oiling or irradiation, etc, have been generally accepted by the international jewellery markets. If Poly Auction (Hong Kong) has obtained gemological reports from internationally recognized gemological laboratories for the Lot(s), all known important facts and conditions of the Lot(s) have contained in the catalogue, our Company assumes no responsibility for the accuracy of the reports. It may not be feasible for Poly Auction (Hong Kong) to obtain laboratory reports for all Lot(s), the estimates are based on all known information at the moment. Bidders must inspect conditions of the Lot(s) by themselves before the auction. Any dissent about conditions of the Lot(s) after the bid shall not justify rescission or cancellation of a sale or any delayed payment. If bidders request a designated laboratory report for any Lot(s), such request should be raised out 14 workings days before the auction and at their own cost. Bidders should also be aware that Lot(s) containing jadeite or gemstones originating from Burma may not be allowed to be imported into the U.S.. This will not constitute a ground for rescission or cancellation of a sale or any delayed payment.

Lot(s) of clocks and watches in the catalogue will be sold at current status (i.e. as is). Bidders should personally inspect the conditions of the Lot(s) before the auction. Descriptions of the Lot(s) in the catalogue are for reference only. The absence of a description does not imply that the Lot(s) is in good condition, free from defects or restorations. Descriptions only reflect subjective opinions of experts of Poly Auction (Hong Kong), it is not a statement of facts, nor a complete record of all repairs, component replacements or restorations. Poly Auction (Hong Kong) makes no guarantee on operation, water-resistance, authenticity and originality of individual parts (including watchstrap) of the Lot(s). In addition, bidders should be aware of the import restrictions of the U.S. concerning luxury watches.

Where the tone, colour, graduation shape or any other feature of the Lot shown in the catalogue and/or any other illustrations, images and public materials differ from those of the original Lot due to printing, photography or other technical reasons, the original Lot shall take precedence. Any introduction and appraisal of any Lot made by the Company and its employees or its agents in any way (including the certificate, catalogue, slideshow and news media) are only opinions for reference and do not constitute any guarantee for the Lot. The Company and its employees or agents shall undertake no liability for any inaccuracy or omission in the aforesaid introduction or appraisal.

Condition reports and grades are provided free of charge as a convenience to our buyers and are for guidance only. They are not an alternative for examining a lot in person or taking your own professional advice from Specialists. Bidders must inspect the conditions of the Lot (s) by themselves before the auction. Any dissent about conditions of the Lot (s) after the bid shall not justify rescission or cancellation of a sale or any delay in payment. The condition of lots sold in our auctions can vary widely due to factors such as age, previous damage, restoration, repair and wear tear. The grading of watches is based on the general condition, quality, technical and historical interest, age and rarity of each timepiece. Lots are sold “as is,” in the condition they are in at the time of the sale, without any representation or warranty as to condition by Poly Auction (Hong Kong) or by the seller. The buyers acknowledge and agree that any sale is entirely the buyers’ decision, and the buyers have not relied upon any representation or other information (whether oral or written) by Poly Auction (Hong Kong) or by the seller.

Condition Grades of Watches

Grading 1: As new. The timepiece appears with neither signs of use nor ownership over time. The movement is in working order when cataloguing.

Grading 1.5: In excellent condition. The timepiece appears with extremely slight signs of ownership over time. It may exhibit very slight hairline scratches on the case but no obvious signs of use. The movement is in working order when cataloguing.

Grading 2: In very good condition. The timepiece appears with slight signs of use over time. It may exhibit slight scratches on the case. The movement is in working order when cataloguing.

Grading 2.5: In good condition. The timepiece appears with obvious signs of use and scratches on the case. The movement is in working order when cataloguing.

Grading 3: In fair condition. The timepiece appears with very obvious signs of use and scratches/defects. Maintenance may be required.

For more details, please refer to the Condition Report for each Lot.

Condition Grades of Handbags

Grading 1: As new. Appears never to have been used. It exhibits no signs of wear.

Grading 1.5: In mint condition; virtually new and unused with very minor signs of ownership over time.

Grading 2: In pristine condition. To the untrained eye, it may appear brand new. There may be a slight condition note, but overall the piece is in excellent condition.

Grading 3: In excellent condition. This is a piece that has seldom been used and shows little to no wear. There may be small condition issues to note overall the piece is in excellent condition.

Grading 4: In very good condition. This piece may show signs of light wear. It is in very good condition but the corners may show signs of light scuffing, the base may show light scratches, and the hardware may exhibit light marks.

Grading 5: In good condition. This piece shows significant wear. There are condition issues that will be noted in the condition report.

Grading 6: In fair condition. This piece shows significant wear and/or damage. It may require repair or refurbishment in order to be used. Condition issues will be noted in the condition report.

Alcohol and Tea

The descriptions about the auction of alcohol and tea are being stated in the catalogue. Our Company reminds bidders to learn more about the auctioned products before bidding. Bidder’s participation in bidding at auction is deemed as the bidder’s approval and acceptance of the package, quality and status of the auctioned items. Any different opinion formed by the bidders after successful bidding, will not constitute a valid reason to withdraw or cancel the bid and delay payment for the auctioned item. Buyers should cautiously inspect the auctioned item during collection. Upon acknowledging receipt of the auctioned item by the buyer (or his agent), the buyer confirms that he or she has accepted the state and quality including but not limited to any defect or flaw on, e.g. the packaging, labels, level of wear and tear, cork, etc., of the auctioned items without any objection.

Language

The Chinese version of the Conditions of Business, Important Notice, Explanation of Cataloguing Practice, Important Notice about Bidding Registration, Important Notice about Payment, Important Notice about Storage Collection Shipping and Export and all other documents such as the terms, conditions, notices, forms etc. contained in this catalogue, announced by the auctioneer or provided at the saleroom as well as the descriptions of the Properties in this catalogue of our Company shall be binding and the English version is for reference only.

Copyright

The copyright of this catalogue belongs to our Company. Without the written permission of our Company, no parts of this catalogue shall be reproduced in any way or used in any other way.

Right of Interpretation

The right of interpretation in respect of the Conditions of Business, Important Notice, Explanation of Cataloguing Practice, Important Notice about Bidding Registration, Important Notice about Payment, Important Notice about Storage Collection Shipping and Export and all other documents such as the terms, conditions, notices, forms, etc. contained in this catalogue, announced by the auctioneer or provided at the salesroom, shall be exercised by our Company.

Important Notices about Bidding Registration

1. When you register to bid in an auction, you must fill in the Bidding Registration Form, with all relevant documents as follow, and pay a deposit in order to complete the registration.
2. Documents that must be provided when completing the bidding paddle registration:
   
   1. Individuals: photo identity, i.e. national identity card and/or passport; proof of current address (if the current address is not shown on the identity document), i.e. utility bill or bank statement.
   2. Corporate clients: a certificate of incorporation and official documents listing directors and shareholders.
   3. Agents and/or Acting Personnel: photo identity of the agent and/or acting personnel, copy of identity document of the person/company that the agent and/or acting personnel acts on, original copy of signed and/or chopped authorization letter from the particular person/ company. Please note that Poly Auction (Hong Kong) Limited does not accept any payment from any third party and this also applies to the agent. If you participate in the bidding on behalf of others, Poly Auction (Hong Kong) only accepts the payment of the principal.
   4. New clients and those clients who have not bidden successfully from Beijing Poly International Auction Co., Ltd., must provide credit proof issued by banks and must complete the registration at least three business days before the auction so that there will be enough time to process the registration.
3. If this is the first time you bid with Poly Auction (Hong Kong) Limited, and you are not recommended by a registered client endorsed by us, the deposit will be HK$500,000. If you intend to bid on a “Premium Lot”(i.e., a lot marked with 〇 in the printed catalogue and/or the digital catalogue), the deposit will be HK$1,000,000, please be aware of the amount of deposit and/or bidding registration procedure for “Premium Lot” can be changed at any time at Poly Auction(Hong Kong)’s sole discretion without prior notice. In either case, you must deliver to Poly Auction (Hong Kong) Limited such necessary financial references, guarantees, deposits and/or such other security as Poly Auction (Hong Kong) Limited may in its absolute discretion require for before your bid. Poly Auction (Hong Kong) Limited may refuse any bidding registration without any explanation at its’ sole discretion.
4. All deposits must be paid in HK dollars by telegraphic transfer, credit card acceptable to Poly Auction (Hong Kong) Limited and/or Union Pay Card under your name. If you are not successful in any bid, the deposit (without interest) will be returned to you by any method as determined by Poly Auction (Hong Kong ) Limited within 14 days after the end of the auction. If you successfully bid for any lot(s), Poly Auction (Hong Kong) Limited may use the deposit to offset any amount of purchase price of the Lot (s) that bought by you. Any losses or expenses from foreign currency conversion involved in the refund will be borne by you.
5. Poly Auction (Hong Kong) Limited has the right to demand the Bidder to provide any proof of financial conditions, guarantee, proof of bank deposit and/or any other necessary documents that our company can demand, at its absolute discretion, and/or asking the Bidder to provide any other collateral for the Lot(s) that the latter intends to bid. Our company reserves the right to investigate the sources of funds of the Bidder.
6. Please be aware that Poly Auction (Hong Kong) Limited can refuse any bidding registration without any explanation at its’ sole discretion.

Important Notices about Payment

1. In addition to the Hammer Price, the Buyer agrees to pay the applicable commission in respect of such Hammer Price. Payment must be made within seven calendar days (including the day of Sale) from the day of Sale. This applies even if the Buyer wishes to export the Lot and an export license is (or may be) required.
2. Where Lot(s) is(are) not collected within 30 calendar days (including the day of Sale) from the day of Sale, the Buyer must pay the monthly storage fee of HK$1,200 per Lot starting from the 31st day. For storage less than one month, one whole month’s storage fee will be charged. All other additional expenses such as insurance, packing and/or transportation costs will be charged separately.

3. Our company accepts the following types of payment:

   Telegraphic transfer
   Payment should preferably be made by telegraphic transfer directly to our company’s account. Please include your name and paddle number or invoice number with your instructions to the bank.

   Bank: The Hongkong and Shanghai Banking Corporation Limited
   Account Name: Poly Auction (Hong Kong) Ltd.
   Account No: 004-848-360475-838
   SWIFT: HSBCHKHHHKH
   Bank Code: 004

   Bank: Bank of Communications Co., Ltd. Hong Kong Branch
   Account Name: Poly Auction (Hong Kong) Ltd.
   Account No: 027-536-9-311-5318
   SWIFT: COMMHKHH
   Bank Code: 027

   Credit Card / UnionPay Card
   Our company accepts payments by credit cards and/or Union Pay which is acceptable to Poly Auction (Hong Kong) up to HK$1,000,000 per auction sale. The Buyer has to bear the administrative charge which is not more than 2.5% of the paid amount. If the Buyer pay by credit card but not in person, the client have to fill in the “Credit Card Authorisation Form” and send back by fax +852 2303 9860) or email cs@polyauction.com.hk or mail to our office address (subject to conditions).

   Cheque
   Our company accepts personal and company cheques, but please be reminded that the purchases will not be released until such cheques have been cleared. Traveller’s cheques are not accepted.

   CASH / CASHIER ORDER
   If payment is made by cash or cashier order, the purchases will be released immediately. However, our company does not accept sums exceeding HK$80,000 (or its equivalent in other currencies) in cash in a single or multiple payments. Our company requests any new clients or purchasers preferring to make a cash payment to provide proof of identity and proof of the permanent address. We reserve the right to seek identification of the source of funds received.

4. If the payment made in a currency other than Hong Kong Dollars, we shall charge the Buyer for any currency costs incurred. This will include bank charges, commissions for converting the currency. The exchange rate of Hong Kong Dollars and that currency will be the rate quoted by such bank as selected by the company, in Hong Kong on the date of payment.
5. Our company will issue an invoice of sold Lot(s) based on the name and address which is (are) on the Bidding Registration Form and the registered name and address should not be changed and/ or amended.
6. Our company does not accept payment from any third party other than the Buyer. This applies to agent as well. If the agent participates in the auction on behalf of any others, we only accept payment from the principal. Except payment from the Buyer directly, our company reserves the right to reject payments from other sources.

Explanation of Cataloguing Practice

Poly Auction (Hong Kong) Interest in Property Consigned for Auction

From time to time, Poly Auction (Hong Kong) may offer a lot which it owns in whole or in part. Such property is identified in the catalogue with the symbol Δ next to the lot number. On occasion, Poly Auction (Hong Kong) has a direct financial interest in lots consigned for sale which may include guaranteeing a minimum price or making an advance to the consignor that is secured solely by consigned property. Such property is identified in the catalogue by the symbol □ next to the lot number. This symbol will be used both in cases where Poly Auction (Hong Kong) holds the financial interest on its own, and in cases where Poly Auction (Hong Kong) has financed all or a part of such interest through a third party. Such third parties generally benefit financially if a guaranteed lot is sold successfully and may incur a loss if the sale is not successful. The financing offered by a third party may be in the form of an irrevocable bid provided by that third party. Where Poly Auction (Hong Kong) has an ownership or financial interest in every lot in the catalogue, Poly Auction (Hong Kong) will not designate each lot with a □ symbol, but will state its interest at the front of the catalogue.

All Measurements Are Approximates and Condition Reports

Poly Auction (Hong Kong) catalogues include references to condition only in descriptions of multiple works (such as prints, books, alcohol and tea). For all other properties, no statement of the condition is made, and only alterations or replacement components are listed. Please contact the Specialist Department for a condition report on a particular lot. Condition reports are provided as a service to interested clients. Prospective buyers should note that descriptions of property are not warranties and that each lot is sold on an “as is” basis.

Catalogue Exchange Rate

HK$7.8 = US$1

The rate of exchange was established at the latest practical date prior to the printing of the catalogue and may therefore have changed by the time of the sale. Bidders should bear in mind that estimates are prepared well in advance of the sale and are not definitive. They are subject to revision.

Explanation of Cataloguing Practice

For Pictures, Drawings, Prints and Miniatures

Terms used in this catalogue have the meanings ascribed to them below. Please note that all statements in this catalogue as to authorship are made subject to the provisions of the Conditions of Business and Limited Warranty.

Buyers are advised to inspect the property themselves. Written condition reports are usually available on request.

1. Name(s) or Recognized Designation of an Artist without any Qualification in Poly Auction (Hong Kong)’s opinion a work by the artist.
2. “Attributed to ...” in Poly Auction (Hong Kong)’s qualified opinion is probably a work by the artist in whole or in part.
3. “Studio of ...”/ “Workshop of ...” in Poly Auction (Hong Kong)’s qualified opinion a work executed in the studio or workshop of the artist, possibly under his supervision.
4. “Circle of ...” in Poly Auction (Hong Kong)’s qualified opinion a work of the period of the artist and showing his influence.
5. “Follower of ...” in Poly Auction (Hong Kong)’s qualified opinion is a work executed in the artist’s style but not necessarily by a pupil.
6. “Manner of ...” in Poly Auction (Hong Kong)’s qualified opinion is a work executed in the artist’s style but of a later date.
7. “After ...” in Poly Auction (Hong Kong)’s qualified opinion a copy (of any date) of a work of the artist.
8. “Signed ...”/“Dated ...”/“Inscribed ...” in Poly Auction (Hong Kong)’s qualified opinion the work has been signed/dated/inscribed by the artist.
9. “With signature ...”/ “With inscription...”/ in Poly Auction (Hong Kong)’s qualified opinion the signature/inscription appears to be by a hand other than that of the artist.
10. “With date ...” in Poly Auction (Hong Kong)’s qualified opinion, the date on the item was not executed on that date.

This term and its definition in this Explanation of Cataloguing Practice are a qualified statement as to authorship. While the use of this term is based upon careful study and represents the opinion of specialists, Poly Auction (Hong Kong) and the consignor assume no risk, liability and responsibility for the authenticity of authorship of any lot in this catalogue described by this term, and the Limited Warranty shall not be available with respect to lots described using this term.

Important Notices about Storage Collection Shipping and Export

1. After the buyer has fully paid for purchased items (the “Lot(s)”) including hammer price and commission, the buyer shall go to the company’s address or other designated locations to pick up the Lot(s) within 30 days from the sale date (including the sale date). If the buyer fails to pick up the Lot(s) within 30 days from the sale date (including the sale date), the relevant storage, transportation, and insurance costs for the Lot(s) since the 31st day shall be borne by the buyer, and the buyer shall be fully responsible for all risks derived from the Lot(s). After the expiry, even if the Lot(s) is still kept by the company or its agents, the company and its staff or its agents shall not bear any responsibility for the damage or loss of the Lot(s) due to any reason.
2. Where Lot(s) is(are) not collected within 30 calendar days (including the day of sale) from the day of sale, the buyer must pay the monthly storage fee of HK$1,200 per Lot since the 31st day. For storage less than one month, one whole month’s storage fee will be charged. The storage fee does not cover storage insurance. For insurance, please contact our persons. Other additional expenses such as packing and/or transportation costs will be charged separately if applicable.
3. The buyer can personally or authorizes someone to pick up the Lot(s) at the company’s address or other designated locations. The company requires identity documents or/and the buyer signed “Collection and Shipping Authorization” to be presented when picking up the Lot(s). The buyer (or authorized person) should carefully inspect the goods and sign for them afterwards. After the buyer (or authorized person) signs for it, it means that the buyer has accepted the condition and quality of the Lot(s) without any objection.
4. The buyer ought to arrange the necessary packaging, transportation, related insurance or export Hong Kong of the Lot(s) by himself, and bear related expenses and taxes. However, the company is happy to provide advice and/or additional services, including finding suitable professional art transportation suppliers and negotiating fee quotations. Buyer should reimburse the company aforesaid costs paid on behalf of the buyer or/and administration fees.
5. The buyer can hire a professional art transportation company to act as an agent for the buyer to pick up, check conditions, package, transport, provide related insurance or export Hong Kong. The buyer should sign the “Collection and Shipping Authorization” and submit it to the company. Once the company delivers the Lot(s) to the buyer’s transportation agent or its employees/branches, it shall be deemed that the company has delivered the Lot(s), and the buyer shall be deemed to have received the Lot(s) in accordance with the normal procedures. The forwarding agent should carefully inspect the goods and sign for them afterwards. After the forwarding agent signs the receipt, it means that the buyer has accepted the condition and quality of the Lot(s) without any objection.
6. If allowed by Hongkong Post or well-recognized couriers, the company can deliver the Lot(s) by post or courier under the buyer’s instruction. The buyer should sign the “Collection and Shipping Authorization” and submit it to the company. Once the company delivers the auction item to Hongkong Post or couriers or its employees/branches, it shall be deemed that the company has delivered the Lot(s), and the buyer shall be deemed to have received the Lot(s) in accordance with the normal procedures. Unless the buyer specifies and bears the insurance premium, the parcel is generally not insured during the mailing or express delivery process.
7. The company is not responsible for all errors, omissions, damages or losses caused by the transportation company, postal or couriers designated by the buyer or recommended by the company to the buyer.
8. The company has the right to decide whether to accept the buyer’s request and provide packaging and handling services. If the staff of the company handles the Lot(s) on behalf of the buyer at the request of the buyer, the above packaging and handling are only regarded as the service provided by the company for the buyer, so any risks and losses incurred are the buyer’s own responsibility.
9. Picking up at auction venue is applicable for certain Lot(s) only. Please make an appointment for collection after auction dates.
10. For details of storage, collection, delivery or/and export, please contact the Warehouse and Logistics Department. Telephone: +852 2303 9899 and Email: shipping@polyauction.com.hk