Below is our general consignment agreement, which may be modified to meet the consignor’s specific needs.
1. COMPENSATION: For China Arts Auction’s services in selling your personal property at auction we will be entitled to retain from the proceeds as its compensation an amount based upon the final bid price of each item sold and calculated as follows:
(a) Ten percent (10%) of individual auction items selling at $7001 and above
(b) Fifteen percent (15%) of individual auction items selling at $3501 thru $7000
(c) Twenty percent (20%) of individual auction items selling at $1001 thru $3500
(d) Twenty-five percent (25%) of individual auction items selling at $101 thru $1000
(e) Thirty-nine percent (39%) of individual auction items selling at any amount thru $100
(f) Insurance: 1.5% of the final bid price of each item sold or the appraised (or reserved) value of any unsold items that are returned to the consignor
This commission includes all customary expenses of sale except for shipping and packing charges as set forth in paragraph 5 below. In addition, a premium of nineteen percent of the purchase price up to $70,000 and ten percent of any amount over $70,000 (plus an additional three percent for internet buyers) of each individual auction lot shall be added to the purchase price and paid by the buyer as a part of the purchase price. This sum shall also be collected and retained by China Arts Auctioneers as additional compensation. You are responsible for any artist royalties that may arise. China Arts Auction will be entitled to full lost compensation for any item(s) consigned by you and then returned to you prior to the auction.
2. FINANCIAL COMPENSATION TO CONSIGNOR: Payment to consignor for items sold will be made within thirty (30) working days, after items are sold. In the event that buyer fails to remit payment for the consigned property, China Arts Auction shall attempt to collect the amount due, at China Arts Auction discretion. If China Arts Auction is unsuccessful in collecting the full amount due, China Arts Auction reserves the right to rescind the sale and re-offer the consigned property at a future sale.
3. SERVICES RENDERED: China Arts Auction shall undertake to sell your personal property at public auction to the highest competitive bidder China Arts Auction reserves the right, to determine the method and manner of lotting your personal property, to accept or reject any bid, to remove any or all of your personal property from any particular auction and schedule it for a subsequent sale, to determine whether and in what manner to advertise your personal property or the sale at which it shall be sold and any such sale shall be without reserve or limits, unless the Specialist accepting the property agrees on a reserve in writing on this contract. China Arts Auction will bear the cost of any advertising of your personal property. The CONDITIONS OF SALE printed in China Arts Auction catalogues comprise China Arts Auction’ agreement with the buyer at auction. You authorize China Arts Auction to accept the return, and rescind the sale, of any property at any time if China Arts Auction, in its judgment, determines that selling of the property may subject China Arts Auction and/or you to any liability, including any liability arising from claims relating to any attribution or identification of authorship, period, culture, source of origin, physical condition, size, quality, rarity, importance, authenticity (including counterfeit), or other information included in any description of the property. The estimates will be lowered on items that will be reoffered in a subsequent sale.
4. SALE: At present China Arts Auction anticipates that your personal property will be sold at a sale(s) presently scheduled for _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . This is an estimate only and may be reset at the sole discretion of China Arts Auction. We are authorized to sell any property that does not sell at that auction post-auction, provided the sale price is approximately the same as the highest price sought by China Arts Auction at the auction.
5. PACKING AND SHIPMENT: China Arts Auction will undertake the packing and shipment of the personal property at your expense. The charge for these services is $________ . China Arts Auction’ charges for packing and shipment will be deducted from the proceeds of the sale.
6. LEGAL STATUS AND OWNERSHIP: Unless you otherwise indicate, by signing this agreement you are hereby confirm that you are the owner of the personal property described on the attached schedule and have the right and authority to authorize us to sell the same. If you are acting as agent for another party who does not sign this agreement, please indicate you are an agent and the name of the owner when signing this agreement. By signing as an agent, you are representing to China Arts Auction that you have the authority and power to authorize Linwoods to sell the same for your client and that your client shall be, along with you, jointly and completely liable for your obligations and liabilities hereunder. In either case, you agree to defend, indemnify and hold China Arts Auction harmless from any and all costs, expenses, liabilities and damages, including reasonable attorney’s fees, that China Arts Auction may incur as a result of any claims made that you did not have authority to sign this agreement and/or authorize Linwoods to sell the personal property.
7. SECURITY INTERESTS: The buyer hereby grants Linwoods a security interest in the personal property to secure payment of any sums, which may become due to Linwoods under the terms of this agreement. China Arts Auction shall have all of the rights of a secured party under the laws of the State of California.
8. OWNERSHIP OF SELLER: China Arts AUCTIONEERS is a business name used by XXXXXXXXXXXXXXX ., a California corporation, which owns and operates the business. XXXXXXXXXXXXXX. dba China Arts AUCTIONEERS is licensed and regulated by the California Secretary of State.
9. LIMITATION OF DAMAGES: Your payment of the insurance fee renders China Arts Auction liable for loss due to theft, fire or other means (subject to the usual form of exclusions including but not limited to earthquake, flood, and acts of war). In the case of damage or destruction of your personal property, your compensation with respect to such damage or loss shall be either the repair or replacement of the damaged or lost property or, at Linwoods choice, payment to you of the fair market value of the damaged or lost property at the time of damage or loss.
10. ENTIRE CONTRACT: This document contains the entire terms of agreement between us pertaining to our mutual rights and obligations. Any verbal representations or modifications concerning our agreement or this document shall be of no force or effect except as stated in subsequent writing.
11. GOVERNING LAW: The legitimacy of this agreement and of any of its terms or provisions, including the rights and obligations of the parties under this agreement shall be interpreted pursuant to and in accordance with the laws of the State of California.
12. ARBITRATION OF DISPUTES: Both parties agree that any dispute or claim in law or equity, including but not limited to, any cross-claim asserted by any party to this agreement, that arises out of the subject of this agreement in which the sum in the dispute exceeds $5,000 shall be decided by neutral, binding arbitration in accordance with the rules of the American Arbitration Association concerning arbitration of commercial disputes. The arbitration fees and costs shall be equally divided among the parties, but the prevailing party shall be allowed to recover its actual attorney’s fees. Judgment upon the award of the arbitrator may be entered into the appropriate jurisdictional court.