A circular pendant and chain, set with CZs, in a Greek key border, unmarked, 1.5cm high, on fine

TERMS & CONDITIONS OF AUCTION BUSINESS

USER’S INTRODUCTION


1. As is widely recognised, modern consumer protection law, whether it stems from the UK or the EU, is having a steadily increasing impact on the sale of chattels by auction. Furthermore, the Unfair Terms in Consumer Contracts Regulations 1994 apply to auction sales and lay down an indicative, non-exhaustive, list of standard terms which may be regarded as unfair and therefore not binding on the consumer. These regulations also stipulate that contractual terms shall be expressed ‘in plain, intelligible language’.

2. The auctioneer meets possible consumers at two points. Firstly, the seller is a consumer of the auctioneer’s services.

Secondly, buyers, though not primarily contracting with the auctioneer, who is merely an agent for the seller, nevertheless normally contract on standard conditions laid down by the auctioneer as agent. Some of these conditions create a direct contract between buyer and auctioneer.

3. The opportunity has been taken to create the most up-to-date ‘Conditions of Business’ taken from the ‘model’ provided by the Royal Institution of Chartered Surveyors by consultation with the Office of Fair Trading. It is designed to reflect the law and provide what protection is reasonable for the seller, the auctioneer and the buyer in respect of duties and liabilities arising in the numerous transactions which take place throughout England and Wales. The authors had in mind general and specialised sales of chattels, including fine art.

4. The two primary documents are the ‘Terms of consignment for sellers’ and the ‘Conditions of sale’. Many auction houses have hitherto made little attempt to separate these two fundamental documents and essentially use one set of conditions of sale with a short further document for vendors. It is, of course, essential that sellers are aware of and consider themselves bound by the relevant conditions of sale. If it were not so, the auctioneer would have no authority, for example, to give to buyers the benefit of any antiforgery clause.

Nevertheless, the two transactions between seller and auctioneer and seller and buyer are completely distinct contracts and we have therefore placed considerable importance on using the expression ’Terms of consignment’ for sellers and other consignors when before the auction takes place they consign the relevant property for sale, and ‘Conditions of sale’ for transactions which actually take place by auction.


5. Finally, it is of course essential that buyers and sellers are bound by relevant conditions. It is customary to print conditions of sale in catalogues and/or clearly display them in the saleroom or online before the auction sale takes place. Similarly, sellers should preferably be supplied with a printed version of the ‘Terms of consignment’ when consigning property for sale. The golden rule is that all parties should have notice of the relevant terms and conditions before or at the time of the making of the contract.

INFORMATION FOR BUYERS

1. Introduction: The following informative notes are intended to assist Buyers, particularly those inexperienced or new to our salerooms. All sales are conducted on our printed ‘Conditions of sale’ which are readily available for inspection and normally accompany catalogues. Our staff will be happy to help you if there is anything you do not fully understand.

2. Agency: As auctioneers we usually contract as agents for the seller whose identity, for reasons of confidentiality, is not normally disclosed. Accordingly, if you buy your primary contract is with the seller.

3. Estimates: Estimates are designed to help buyers gauge what sort of sum might be involved for the purchase of a particular lot. The lower estimate may represent the reserve price and certainly will not be below it. Estimates do not include the buyer’s premium or VAT (where chargeable). Estimates are prepared some time before the sale and may be altered by announcement before the sale. They are in no sense definitive and are subject to constant revision.

4. Buyers premium: The ‘Conditions of sale’ oblige buyers to pay a buyer’s premium at 24% on the hammer price of each lot purchased with a minimum of £2 per lot. In the case of lots purchased ‘Live Webcast’ through external internet bidding platforms this will charged at 29.5% on the hammer price. In addition, VAT is payable on this premium (see below). To clarify, live webcast auctions are NOT sales governed by Distance Selling Regulations – you were given the opportunity to view, even if you did not.

5. VAT: An asterisk (*) indicates that VAT is payable by the purchaser at the standard rate imposed by current UK law on the hammer price as well as being an element in the buyer’s premium, lots are noted in the saleroom by a red dot on the lot number. This imposition of VAT is likely to be because the seller is registered for VAT within the European Union and is not operating the Dealers Margin Scheme or because VAT is due on importation into the UK. The double symbol (**) indicates that the lot has been imported from outside the European Union and the present position is that these lots are liable to a reduced rate of VAT on the gross lot price (i.e. both the hammer price and the buyer’s premium). Lots which appear without either of the above symbols indicate that no VAT is payable on the hammer price. This is because such lots are sold using the Auctioneers’ Margin Scheme and it should be noted that the VAT included within the premium is not recoverable as input tax. (VAT rates are changing with frequency, please check with HMRC. VAT will be charged as set by Government at the time of sale.)

6. Condition and description of lots. We are primarily, agents for the seller. We are dependent on information provided by the seller and whilst we may inspect lots and act reasonably in taking a general view about them we are normally unable to carry out a detailed or any examination of lots in order to ascertain their condition in the way in which it would be wise for a buyer to do. Intending buyers have ample opportunity for inspection of goods and, therefore, accept responsibility for inspecting and investigating lots in which they may be interested. Please note carefully the exclusion of liability for the condition of lots contained in the ‘Conditions of sale’. Neither the seller nor we, as the auctioneers, accept any responsibility for their condition. In particular, mechanical objects of any age are not guaranteed to be in working order.

However, in so far as we have examined the goods and make a representation about their condition, we shall be liable for any defect which that examination ought to have revealed to the auctioneer but which would not have been revealed to the buyer had the buyer examined the goods. Additionally, in specified circumstances lots misdescribed because they are ‘deliberate forgeries’ may be returned and repayment made. There is a 21 day time limit from the date of sale, not date of collection or receipt. (The expression ‘deliberate forgery’ is defined in our ‘Conditions of sale’).

7. Electrical goods: Items are tested by a qualified electrician for SAFETY ONLY. An item that passes the PAT safety test may not work. Conversely, an item that fails the test may work with just minor repair. ‘Working Order’ and ‘Safe’ are two completely different concepts. The only thing you may take for granted is that the item will be safe at the point of sale. Items that have failed will have their cabling cut to source, labelled and sold ‘For Trade Only’. To use the object you will have to change it radically from what was sold to you. Therefore, the Auctioneers cannot be held responsible after the point of sale. Those items sold genuinely as ‘antiques or collectables’ will not have been tested and if bought for use must be checked over for compliance with safety regulations by a qualified electrician before use. This is an express condition.

8. Export of goods: Buyers intending to export goods should ascertain (a) whether an export licence is required and (b) whether there is any specific prohibition on importing goods of that character because, e.g. they may contain prohibited materials such as ivory. Ask us if you need help.



9. Bidding in person: Some form of identification with proof of address will be required if you are unknown to us. Bidders may be required to register before the sale commences and lots will be invoiced to the name and address on the registration form. Account transfers will not be recognised or facilitated under any circumstances.

10. Absentee bidding: Commission bids may be left with the auctioneers indicating the maximum amount to be bid excluding buyers’ premium. They will be executed as cheaply as possible having regard to the reserve (if any) and competing bids. If two buyers submit identical commission bids, the auctioneers may prefer the first bid received. If there are genuine reasons why you are unable to leave a Commission Bid and you wish to bid by telephone we may accommodate on lots where your opening bid will be £500 or above. There are inherent dangers with this practice; therefore all arrangements shall be entirely at the bidder’s risk. Absentee bid instructions must be received by telephone, fax or email 12 hours prior to the sale.

11. Methods of payment: Accounts are due for settlement SALEDAY. The following methods of payment are acceptable. There will be NO EXCEPTIONS to this policy. To avoid undue embarrassment for yourself or our staff, please do not ask for preferential treatment.

i. Cash. We no longer accept cash payments. ii. Debit Card. No limit with chip & pin. (Card Not Present limit £500 & no CNP on gold or silver). iii. Credit Card. We no longer accept credit cards. iv. Bank Drafts & Building Society Cheques. No limit. Due to forgeries, we will retain the goods for 3 working days to establish clearance of funds. v. Cheques. We no longer accept cheque payments. vi. Bank Transfer for Bourne Auctions. Payments to Golding Young Limited - Auction Clients Account – Bourne. 40-22-19 22034859. HSBC, 88 Westgate, Grantham NG31 6LF. BIC/Swift Code HBUK GB4B . IBAN is . GB93HBUK40221922034859 vii. Bank Transfer for Grantham Auctions. Payments to Golding Young Limited - Auction Clients Account – Grantham. 40-22-19 13666891. HSBC, 88 Westgate, Grantham NG31 6LF. BIC/Swift Code HBUK GB4B. IBAN is GB16HBUK40221913666891. viii. Bank Transfer for Lincoln Auctions. Payments to Golding Young Limited - Auction Clients Account - Lincoln. 40-22-19 33667200. HSBC, 88 Westgate, Grantham NG31 6LF. BIC/Swift Code HBUK GB4B. IBAN is GB82HBUK40221933667200.

Bank Transfer payment types, codes and clearance times: BACS – code BP = cleared funds on the 4th day. EFT or CHAPS – code CR + ADVICE CONFIRMS = cleared funds after 24hrs. If early release of goods is requested our staff will ring HSBC to confirm guaranteed cleared funds.

12. Collection and storage: Goods can be collected as soon as they are paid for and within two working days following the sale. If goods remain with us and we have no contrary written advice of your intentions the items will be moved to storage and reasonable labour charges levied and storage at the rate of £2+vat per lot per day thereafter for small items (1 person safe carry) and £10+vat per lot per day for furniture and large items (2 person safe carry). This satisfies the requirements of the Consumer Rights Bill (2014)..

13. Late payment penalties: Auction accounts have always been due Saleday. Any account remaining outstanding after 3 days will have a £20+vat administration charge applied. We require payment to terms. Payment must be made on time, in full, and without any deduction, set off or counterclaim. In the event that an account is outstanding after 7 days, we will refer the matter to our debt collection agents, Daniels Silverman Limited, which will incur a surcharge of 20% of the debt, plus VAT at the prevailing rate. You agree that you will be legally liable to pay us that surcharge, and that payment of the same can be enforced against you in court. You also agree to pay interest at the relevant reference rate provided for under the Late Payment of Commercial Debts (Interest) Act 1998, which interest is payable both after and before any judgment of the court and continues to accrue.