Auction terms and conditions

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ON-SITE AUCTION TERMS AND CONDITIONS

Article 1. Purpose

These Terms and Conditions describe the auction procedures and general requirements for an auction to be held by I AUCTION CO., LTD. (hereafter the “Company”) and the rights, duties and responsibilities of the Company and users.

Article 2. Definitions

  • ① “In-house Auction” means an on-site auction held by I AUCTION in accordance with the Auction Terms and Conditions and Important Notice.
  • ② “Auction Catalog” means a book published by I AUCTION in connection with an In-house Auction containing descriptions and information about items to be sold at auction (including electronic catalogs). “Auction Catalog, etc.” means all forms of materials provided by I AUCTION in connection with an Auction Catalog and the relevant auction, including, but not limited to the website of I AUCTION, e-mail, text messages, smartphone apps, list books, brochures, condition reports, proposals, research materials, screens used at an auction site, promotional materials, advertising materials, and printed matter.
  • ③ “Auction Date” means a date on which any auction item is put up for auction at an In-house Auction.
  • ④ “Business Day” means any calendar day excluding Saturdays, Sundays or public holidays of South Korea.
  • ⑤ “Auction Period” means the length of time for which an In-house Auction is held including the auction commencement date.
  • ⑥ “Consignor” means any individual or company that enters into a consignment agreement with I AUCTION to deliver a proprietary item such as an artwork owned by the individual or company to an In-house Auction before the auction commencement date, and that desires to sell the item through the Company’s auction process.
  • ⑦ “Bidder” means any individual or company that submits an auction bid to I AUCTION to attend an In-house Auction and purchase an item; any individual or company whose bid has been accepted by I AUCTION or, if applicable, that has received a written confirmation from I AUCTION in accordance with the Auction Terms and Conditions and Important Notice.
  • ⑧ “Successful Bidder” means any individual or company that attends an auction held by the Company and is selected by the auctioneer as the highest bidder in accordance with the Auction Terms and Conditions.
  • ⑨ “Member” means any person who registers to be a member by providing the Company with personal information. Members are classified into regular and associate members.
  • ⑩ “User” means a Consignor, a Bidder, a Buyer, or a Member who attends an auction held by the Company or receives the services provided by the Company.
  • ⑪ "Cancellation Fee” means an amount equal to thirty percent (30%) of the winning bid on an auction item.
  • ⑫ “Award Fee” means an amount owed by a Successful Bidder to I AUCTION that is the sum of all taxes, expenses, charges and costs, including exchange charges, a charge for storage, packaging, delivery and shipping insurance costs, which I AUCTION, its managers, staff, employees, and/or agents has paid in connection with the sale of auction items in accordance with the Auction Terms and Conditions and/or Important Notice.
  • ⑬ “Buyer’s Premium” means a fee that a Successful Bidder owes to I AUCTION for the auction item purchased under an auction agreement in accordance with the Auction Terms and Conditions.
  • ⑭ “Presale Estimate” means the price range of an auction item determined by I AUCTION at its sole discretion. The estimated price range is represented by the Company as low and high presale estimates. The Presale Estimate is offered to Bidders for convenience only and determined irrespective of the actual winning bid. The Company is not responsible for the citation of such Presale Estimates made outside an auction.
  • ⑮ "Starting Bid" means the starting price for an auction item determined by I AUCTION and the auctioneer at their sole discretion.
  • ⑯ "Winning Bid" means the price at which an item is sold at auction, where the sale of the item concludes with the fall of the auctioneer’s hammer and the picking up of a numbered paddle in accordance with the Auction Terms and Conditions.
  • ⑰ "Purchase Price” means the sum of the Winning Bid and the Buyer’s Premium for an auction item.
  • ⑱ “Reserve Price” means a hidden minimum price for an auction item determined prior to the auction, either as agreed upon in writing between the Seller of the auction item and I AUCTION (if the Consignor is the Seller), or as determined by I AUCTION (if I AUCTION is the Seller). A Reserve Price is not made known to Bidders and may be used as the Starting Bid with the consent of the Consignor.
  • ⑲ “Seller” means either I AUCTION or a Consignor who is a party to an auction agreement in connection with an auction item. “Seller” means a party to an auction agreement concerning the sale of auction items
  • ⑳ The due dates calculated hereunder include non-working days unless otherwise specified. Non-working days are based on bank business days.

Article 3. Posting, Explaining, and Changing Terms and Conditions

  • ① The Company must post these Terms and Conditions on its website where they are clear and readily available to Users. The Company shall distribute copies of these Terms and Conditions when Users request ones when registering as Members or when entering into any auction-related agreement.
  • ② The Company must explain all important terms and conditions set forth herein in such a way that Users understand such terms and conditions when entering into registration or auction-related agreements. However, for Users who have been offered explanations before, the Company may be relieved of the responsibility to explain with the User’s consent insofar as no changes have been made to these Terms and Conditions.
  • ③ The Company may make changes to these Terms and Conditions to the extent permitted by applicable law, including the Regulation of Standardized Contracts Act and the Consumer Protection Act.
  • ④ If any change is made to these Terms and Conditions, the Company must post a notice on the homepage of its website specifying the effective date and the reason the change is necessary, alongside the current Terms and Conditions, at least seven (7) days prior to the effective date. However, if any change made to these Terms and Conditions is unfavorable to Users, a notice of such change shall be given a grace period of at least thirty (30) days. The Company must make clear and readily available to Users a comparison of the Terms and Conditions before and after the change.
  • ⑤ Any change made to these Terms and Conditions shall only apply to agreements entered into after the date the change takes effect. For all prior agreements, the Terms and Conditions before the change has been made shall apply. If a User who entered into an agreement expresses its intent to be bound by the revised Terms and Conditions and obtains the Company’s approval during the period of notice of changes specified in ③, then the revised Terms and Conditions shall apply.
  • ⑥ Additional terms and conditions and interpretations of these Terms and Conditions are governed by the Regulation of Standardized Contracts Act, applicable legislation, or prevailing custom.

Article 4. Members

  • ① Any person who pays an annual membership fee and registers with the Company becomes a regular member of the Company. Members will not receive a refund of the membership fee already paid.
  • ② The Company issues a membership card to each regular Member.
  • ③ Regular Members receive catalogs and other information online and are eligible to participate in auctions conducted by the Company.
  • ④ Associate Members are non-paying members and receive all sorts of information online, but they are not permitted to participate in an auction.
  • ⑤ The Company may limit or suspend the eligibility of a Member if the Member:
    • 1. Provided false information in their registration form;
    • 2. Failed to the obligations applying to all Members who participate in an auction, including an award fee;
    • 3. Caused a major disruption to the auction process by preventing other bidders from participating in an auction, distributing false information, or using another member’s name;
    • 4. Committed illegal activity, violated the Terms and Conditions, or otherwise engaged in anti-social activity in connection with an auction;
  • ⑥ Members who repeat the same act more than twice for which their eligibility has been limited or suspended by the Company or who fails to cure the breach within thirty (30) days of notice may be stripped of their eligibility permanently.
  • ⑦ The Company will delete the membership of any Member stripped of their eligibility for the reasons described above. That Member will be notified of deletion of their membership and the annual membership fee already paid will not be refunded.
  • ⑧ Any notice required to be given hereunder will be sent to the e-mail address that the Company agreed to assign each Member.

Article 5. Auction Types and Terminology

  • ① The Company holds a preview prior to an auction allowing all prospective bidders to get glimpses of auction items.
  • ② The Company shall conduct an auction consisting of artworks, either on site or online, and related activities such as providing information about the works and brokering sales. However, the date, time and venue of an auction are subject to change if the change is absolutely necessary. The Company reserves the right to use any item held under a consignment agreement for the purpose the Company deems appropriate in producing printed matter related to the Company’s website.
  • ③ Any person or entity is allowed to be present and entrust items for auction, and all Consignors must pay the Company an entry fee of ₩100,000 in advance, which includes a catalog registration fee, an evaluation fee, a storage charge, and charges for failure. The Consignor must pay a fee for special appraisal services conducted for a certain item and the appraisal fee will not be returned to the Consignor even if their bid has failed. Consignors cannot bid on the items they have entrusted.
  • ④ An auction is conducted in the numerical order of the items listed in the catalog. The Company may cancel an auction for items scheduled to be sold without notice, put up multiple items with the same number in multiple listings or items with different numbers in a single listing.
  • ⑤ The auctioneer shall call out the highest bid more than once and conclude the auction by the fall of the hammer and calling the paddle number of the highest bidder, determining the Successful Bidder and the Winning Bid.
  • ⑥ The auctioneer may determine whether a bidder is qualified if a dispute has arisen among bidders or if the validity of a bid is questionable, or may put up the item in question for resale. After the Successful Bidder has been selected and the auctioneer proceeds to the next item, the result of the previous auction cannot be disputed.
  • ⑦ Asking prices: The auctioneer may at their sole discretion determine the and shall present increments in the before the auction commences. Bidders may present an oral proposal of the desired price but the proposal may not be accepted by the auctioneer.
  • ⑧ The Company may place bids on behalf of the Consignor up to the amount of the Reserve Price to maintain the price. If a bid fails to reach the Reserve Price, the bid will not be effective.

Article 6. Bid Types and Winning Bid

  • ① Only Members of the Company or those duly authorized by Members are permitted to bid at auctions.
  • ② Open Bid: Members who w to place bids shall complete a registration form given by the Company, receive an auction paddle, be present at the auction site, and make a bid by raising their paddle at the auctioneer’s asking price.
  • ③ Written Bid: Bidders who cannot attend the auction in person for any reason may participate by written bids in the form given by the Company.
  • ④ Telephone Bid: Bidders who cannot participate in person or by a written bid for any reason may participate by telephone in the way specified by the bidder. Telephone bids are recorded to avoid disruption or interruption of the auction.
  • ⑤ Winning Bid: Any bidder who submitted the highest price above the reserve price in person, in writing, or by telephone will be deemed as the successful bidder.
  • ⑥ Priority of Winning Bids: If bidders attending in person, by telephone, or in writing submit identical bids, priority will be given in order of bids received in writing, in person and by phone. In case of more than two identical written bids, any written bid submitted first to the Company will be selected.
  • ⑦ Consignors cannot bid on their own items.

Article 7. Bidder’s Duties

  • ① The artist name, title, material, dimensions, and origin of an artwork stated in a catalog are only the statement of the bidder and may not be absolutely true or factual.
  • ② The Company enters each auction item “as it is” without any change. It is the responsibility of the Bidder to conduct a thorough investigation of the desired item prior to the auction. The Company’s warranty does not cover any description or image (plate) of any artwork provided in connection with the condition and attributes of the work except as set forth in Article 11 of the Terms and Conditions. It is also the sole responsibility of the Bidder to determine whether or not the work has been damaged or restored, the presence of any error or omission in the description of the work contained in the catalog, and discrepancies between the presented image and the actual work. The Company will conduct the auction on the assumption that the Bidder has ed all those responsibilities

Article 8. Payment of Buyer’s Premium and Purchase Price by the Successful Bidder and Delivery of Items

  • ① The Buyer’s Premium payable to the Company in connection with any auction item shall be fifteen percent (15%) of the Winning Bid (VAT-exclusive).
    • For instance, if the item is sold for ₩10,000,000:
      10,000,000 x 15% = 1,500,000
      A buyer’s premium of ₩1,500,000 and a VAT of ₩150,000 must be paid.
      The total purchase price will be ₩10,000,000 (winning bid) + ₩1,500,000 (buyer’s premium) + ₩150,000 (VAT) = ₩11,650,000.
    • ② Payment of the price for the artwork sold
      1. The Successful Bidder must pay the full bid amount (total purchase price) including the winning bid and the buyer’s premium within seven (7) days after winning the bid (within twenty one (21) days if the Winning Bid is greater than ₩300,000,000).
      2. The Successful Bidder will be charged a late payment fee at an annual rate of 18% based on the number of delay days if the bidder fails to pay the full purchase price within seven (7) days of the auction date (within twenty one (21) days if the Winning Bid is greater than ₩300,000,000).
      3. The Company will demand the Successful Bidder to pay the full purchase price if the bidder fails to pay the full purchase price within seven (7) days of the auction date (within twenty one (21) days if the Winning Bid is greater than ₩300,000,000). If the bidder fails to pay in full the sum of the total purchase price and interest charged on late payment within thirty (30) days of the auction date, the Company may cancel the winning bid and reserves the right to put the item up for resale or dispose of it in other ways. After sending notice to the Consignor, the Company may claim charges against the Successful Bidder for breach of contract and may charge the Successful Bidder for all administrative expenses which the Successful Bidder has an obligation to pay.
      4. The Successful Bidder may pay the total purchase price through any method specified by the Company including cash, cheque, fund transfer, or remittance to the Company’s bank account.
      5. The Successful Bidder is not permitted to cancel the Winning Bid, but if such cancellation is absolutely necessary, may only cancel the bid with the Company’s approval and the Consignor’s consent by paying a penalty equal to thirty percent (30%) of the Winning Bid within ten (10) days of cancellation. (Members who have cancelled bids, however, may be subject to restrictions on eligibility.) Furthermore, the Company may charge the Successful Bidder for damages arising out of such cancellation of the bid.
      6. The Company shall allow Bidders to thoroughly study and examine all items up for sale in person through an exhibition (preview) of such items prior to the auction. All Bidders are advised to think carefully about placing bids because no winning bid is allowed to be cancelled. The warranty provided for the condition of items up for auction by the Company applies at the time of the auction.
  • ③ Before placing a bid, all Bidders are advised that the export or transfer of cultural property or any artifact abroad is prohibited under the Cultural Property Protection Act.
  • ④ Delivery of works (items): Buyers must take over a purchased item within seven (7) days of payment of the full price and must pay the charge for storage specified by the Company in case of delayed take-over. If the Buyer fails to take over the item within twenty one (21) days of payment of the full price, the item will be transported to a general warehouse, and the Company is not responsible for any destruction or damage to the item unless it is caused by gross negligence or misconduct on the Company’s part.
  • ⑤ (Transfer Tax)
    A transfer tax is imposed on the income earned in the transfer of any Korean painting or calligraphic work or antique. Any item whose transfer value is greater than ₩60,000,000 is subject to transfer tax except the works by living Korean artists as of the date of transfer. The tax rate is twenty percent (20%) of the gain on transfer. If the justification for the purchase cost is insufficient, an amount equal to eighty percent (80%) of the transfer value (90% if the retention period is more than ten (10) years) will be counted as required expenses. A Korean painting or calligraphic work or antique subject to transfer tax includes any of the following:
    • 1. Any one of the following among paintings, calligraphic works or antiques:
    • A. Paintings, drawings, pastel artworks (limited to hand-drawn works, excluding designs and manufactured ornaments), collage, and other similar plaques;
    • B. Original prints, woodcuts, engravings or lithographs; and
    • C. Antiques, limited to those created more than 100 years ago.
    • 2. Any other painting, calligraphic work or antique except those described in 1, with artistic merit or historical importance, as specified in a Decree of the Ministry of Strategy & Finance as agreed upon between the Minister of Strategy & Finance and the Minister of Culture, Sports and Tourism.

Article 9. Consignor’s Duties, Consignment Fee, and Payment

  • ① The Company may restrict the submission of any consigned item if:
    • 1. The authenticity of the work is disputed;
    • 2. The work is not appropriate for the auction or not suitable as an auction item;
    • 3. The item is a pure work of art that was produced less than three years ago.
  • ② Consignor’s Duties
    • 1. The Consignor must warrant that the Consignor is the sole owner of the item to be consigned and has the right to consign the item.
    • 2. The Consignor must warrant that the item to be consigned has never been offered for any bond, debt obligation, lien, or encumbrance.
    • 3. The Consignor must warrant that the ownership of the item to be consigned and all accompanying rights will be transferred to the buyer upon acceptance of the winning bid.
    • 4. The Consignor must warrant that none of its consigned items that are cultural property or artifacts violate the Cultural Property Protection Act. If any item of cultural property or artifact consigned to the Company is found to be either an illegal item such as buried cultural property, illegally excavated article, or stolen property, or a forged item, the Consignor will be held liable for any civil or criminal charges and must immediately refund the full amount of the consignment fee and pay the damages suffered by the Company, and the Company is in no way responsible or liable.
    • 5. The Consignor has an obligation to comply with the Auction Terms and Conditions upon signing the written consignment agreement and is not permitted to cancel consignment of items. If such cancellation is absolutely necessary, the Consignor must pay a cancellation fee equal to 10% of the average price of presale estimates within seven (7) days of notice of cancellation.
    • 6. The Consignor must take over any item that failed to sell at auction within fifteen (15) days of the auction and the Company is not responsible for any destruction or damage to the item that may occur 15 days later unless it is caused by gross negligence or willful misconduct on the Company’s part. The Consignor must also pay the charge for storage specified in the Company’s rules.
  • ③ Consignor’s duty to immediately take over items
    The Company will promptly conduct an appraisal of each item consigned by the Consignor and, upon finding that the consigned item is not suitable for auction, shall immediately notify the Consignor. The Consignor must take over the item for the period immediately upon receipt of notice. The Company is not responsible for destruction, damage or loss that may arise during the period for which the item is not taken over. The Consignor is responsible for all the expenses incurred during the take-over.
  • ④ Consignment fee
    A consignment fee shall be (i) fifteen percent (15%) of a winning bid (VAT exclusive) if the winning bid is less than ₩3,000,000 or (ii) the sum of the amount referred to in (i) and ten percent (10%) of any amount in excess of ₩3,000,000. The value added tax (VAT) shall be added to the aforementioned sum. However, a discount on the consignment fee will be offered based on the annual aggregate of the bids on consigned items, as specified in the Company’s rules.

    (Example 1) If the winning bid is ₩3,000,000:
    1) The consignment fee is ₩495,000, the sum of the pretax consignment
       3,000,000 (winning bid) X 15% = ₩450,000 and the VAT of ₩45,000.
    2) The consignment price is: ₩3,000,000 (Winning Bid) - ₩495,000 (consignment fee) = ₩2,505,000.

    (Example 2) If the winning bid is ₩10,000,000
    1) The consignment fee is ₩1,265,000, the sum of the pretax consignment fee of (3,000,000 X 15%)+(7,000,000 X 10%) = ₩1,150,000 and the VAT of ₩115,000.
    2) The consignment price is: ₩10,000,000 (winning bid) - ₩1,265,000 (consignment fee) = ₩8,735,000.
  • ⑤ Payment of the purchase price
    The Company shall pay the net amount of the consignment price excluding the consignment fee and administrative expenses within fifteen (15) days of the auction date (twenty five (25) days if the Winning Bid is greater than ₩300,000,000) in connection with the purchase price for the sold item collected from the Successful Bidder.
    However, if the Company fails to pay the consignment price within the aforementioned period due to delays in the payment of the price by the Successful Bidder, the Company will pay the price within seven (7) days of the date the purchase price is collected from the Successful Bidder.

Article 10. Post-Auction Sale

  • ① Any work consigned by the Consignor will be kept in the custody of the Company for a week after the work has failed to be sell at auction unless the Consignor expressly refuses to do so and the re-entry of the work for post-auction sale will be deemed as approved by the Consignor, provided that not all works failing to sell at auction will be entered for post-auction sale and that whether or not to enter items for post-auction sale will be determined by the Company unless expressly requested by the Consignor.
  • ② Written bids will be entered for post-auction sale and the bid closing time will be two o’clock in the afternoon five (5) business days after the closing date of the auction..
  • ③ Post-auction sales are also subject to I AUCTION CO., LTD.’s Terms and Conditions.

Article 11. Shipping and Insurance

  • ① (Shipping) – If the Consigner or the Successful Bidder items to be delivered, the Company may arrange shipping and insurance at the risk and expense of the Consignor or the Successful Bidder.
  • ② (Insurance) – The Consignor must provide a certificate of insurance to the satisfaction of the Company during the period from delivery of an auction item to the Company until the date the Company no longer keeps the item in its custody, or during a period of fifty (50) days from the scheduled auction date. The Company may arrange insurance on behalf of the Consignor at the risk and expense of the Consignor.

Article 12. Warranty

  • ① The Company as a broker limits its warranty to the auction items whose headings are in boldface in the catalog. The warranty does not cover supplementary descriptions contained in the catalog, presale estimates, and other information provided orally or in writing by an employee of the Company which are only for reference only.
  • ② A written warranty not exceeding the limits of the warranty described above may be issued at a successful bidder’s request.
  • ③ The Company as a broker limits the warranty period to three (3) years from the auction date and the Company will cancel the winning bid and refund the full amount of the bid and fees if the warranty is found to be invalid during that period, provided that the Successful Bidder meets the following requirements:
    • 1. If the Successful Bidder wishes to dispute the warranty of the Company, the Successful Bidder must submit to the Company a written statement specifying the auction date, the item number, and the reasons for disputing the warranty in connection with the item (work) in question.
    • 2. The Successful Bidder must submit a written claim to the Company within three (3) months after the warranty of the Company first becomes questionable.
    • 3. The Successful Bidder must deliver to the Company the item in question in the same condition as it was put up for auction.
  • ④ In case of any disagreement between the Company and the Successful Bidder over the reasons provided by the Successful Bidder, the Company may request the Successful Bidder seek a written opinion from two (2) experts in the relevant area to determine the authenticity of the work in question. Those experts must be the persons whose qualifications both the Successful Bidder and the Company have acknowledged. The Company may at its own cost seek an additional expert opinion.
  • ⑤ (Warranty Exceptions)
    • The following are not covered by the warranty:
    • 1. Where the prevailing expert opinion on an item at the time of the auction has changed or is disputed;
    • 2. Where the possibility of disagreement in academia or among expert groups has been notified either through a catalog or at the auction site;
    • 3. Where evidence in support of a dispute over the warranty has been provided through means not generally used at the time of the auction, impractically expensive, or involving destructive testing.
  • ⑥ If the Company is held liable for warranty, the Consignor of the work in question shall an obligation to repair.
  • ⑦ (No Assignment)
    No assignment of any part of the warranty is permitted. This warranty is made only to the original buyer. In the event that the item in question is handed over to a successor because the original buyer dies within three (3) years of the auction, the warranty will be transferred to the successor.
  • ⑧ (Limited Liability)
    The Company’s warranty liability is limited to the amount that a successful bidder has actually paid to the Company. In other words, the Company does not pay for any loss arising out of interest rate changes or currency value changes.

Article 13. Protection of Personal Information

  • ① The Company limits the collection of personal information to the minimum amount necessary to an agreement or provide necessary information. The following includes the required personal information and other information is optional:
    • 1. Name
    • 2. Foreigners: Alien registration number
    • 3. Address
    • 4. Phone number
    • 5. Desired ID (for Members)
    • 6. Password (for Members)
    • 7. E-mail address (or mobile phone number)
  • ② The personal information thus provided cannot be used for any other purpose or given to any thid party without the User’s written or electronic consent containing the User’s official electronic signature, except where disclosure is absolutely necessary or required by law. When the Company makes personal information available to a third party, the Company is required to obtain the consent of the User to disclosure of that personal information.

Article 14. Changes, Amendments or Additions

  • ① The Company shall post these Terms and Conditions on its website and post catalogues, receipt/issue slips, and a consignment agreement where they are clear and readily available to Users.
  • ② The Company must explain important terms and conditions to avoid misunderstandings by Users.
  • ③ The Company may change these Terms and Conditions to the extent such changes does not violate any applicable laws including the Regulation of Standardized Contracts Act.
  • ④ If any change is made to these Terms and Conditions, the Company must post a notice on the homepage of its website comparing the terms and conditions before and after the change, at least seven (7) days prior to the effective date.

Article 15. Jurisdiction and Governing Law

  • ① The Company shall set up and operate a grievance mechanism to pay close attention to legitimate concerns or complaints brought up by users and handle such complaints with appropriate compensation.
  • ② The Seoul Central District Court has jurisdiction to settle any dispute arising between the Company and a User in a commercial transaction.
  • ③ Any dispute arising between the Company and a User in a commercial transaction shall be governed by the laws of the Republic of Korea.