71. Art Auction

1. Definitions and terms: 1.1. Auction House: the BÁV Auction House and Pawnshop Private Company Limited by Shares (1027 Budapest, Csalogány u. 23-33.), as a legal person dealing with organising auctions in a businesslike manner. 1.2. Auction Buyer: is a person or organisation that intends to make or makes bids for the auctioned item in person, through his or her representative with a registered disk or as an absentee auction buyer pursuant to Section 8 of the present document, the Auction Terms & Conditions. 1.3. Buyer: is the Auction Buyer with whom the sales contract is concluded. 1.4. Hammer Purchase Price: The price developed with acceptance of the Auction Buyer?s bidding offer at the highest bid price for the given item and verifying the acceptance with a hammer beat which is not equal to the Full Purchase Price specified in the Auction Terms & Conditions. 1.5. Full Purchase Price: is the Hammer Purchase Price increased by the amounts specified in point 6 of the Auction Terms & Conditions. 2. Auction Items 2.1. Auction Item is the article or group of articles that was found suitable for bidding by the Auction House and that can be bid for independently. The Auction House issues an Auction Catalogue (Catalogue) of the Auction Items and the Auction Items can be inspected at the exhibition held before bidding. The Catalogue may also be purchased independently, however, its purchasing in itself will not result in any right or obligation for the buyer of the Catalogue to take part in the auction or to make bids. The descriptions and the illustrations in the Catalogue are for the identification of the items only. The description of Auction Items in the Catalogue is based on the subjective opinion of experts. In the case of the Auction Items the Catalogue raises attention to the faults and deficiencies that may considerably reduce the value of the given Auction Item. 2.2. The Auction House reserves the right to postpone the auction, to withdraw from bidding particular Auction Items included in the Catalogue, and to modify the upset price and descriptions included in the Catalogue, as well as to change the sequence of bidding for the Auction Items. In such cases no compensation for damages, and no other claims and demands can be asserted. 3. Conditions of participation in the auction 3.1. Participation in the auction in person is only possible with bidding paddle registered by name and address. The bidding paddle may be handed over to the person whose name and address have been registered. Simultaneously with the registration, the Auction Buyer takes over the auction terms & conditions (Auction Terms & Conditions) at the place of the auction or the latter is hung out at the place of the auction. Taking over of the bidding paddle and that of the Auction Terms & Conditions are to be considered as an implicit conduct with respect to that the Auction Buyer has been familiarised with the Auction Terms & Conditions and has accepted them as binding upon him- or herself. 4. Process of the auction 4.1. The process of the auction is managed by the auctioneer on behalf of the Auction House. In the course of the auction the auctioneer has the right to make decisions considering all issues and against such decisions no objection or appeal lies within the framework of the auction. The auctioneer shall be responsible for keeping the auction in order and may take all necessary actions and give instructions in the interest of keeping or restoring the order of the auction. The auctioneer may prohibit that the person disturbing the order of the auction remains to be present at the auction. 4.2. The auctioneer briefly introduces the items to be auctioned (in succession in the Catalogue as a general rule) and announces the starting price while the Auction Buyers place their bids through showing the full numbered side of their bidding paddle towards the auctioneer. In doubt the auctioneer may ask to verify in words the reason of movement of the paddle. If more than one bid is placed at the starting price, the auctioneer shall increase the price according to the bidding steps until only one bidder remains and the highest bid price with respect to the hammer price is accepted. 4.3. The first bid price shall be the same as the starting price of the item to be auctioned. The additional bid prices may develop according to the bidding steps detailed below: Last bid price (in HUF) Amount of increase (in HUF) from 1 000 to 20 000 1 000 from 20 000 to 50 000 2 000 from 50 000 to 100 000 5 000 from 100 000 to 200 000 10 000 from 200 000 to 500 000 20 000 from 500 000 to 1 000 000 50 000 from 1 000 000 to 2 000 000 100 000 from 2 000 000 to 5 000 000 200 000 from 5 000 000 to 10 000 000 500 000 above 10 000 000 1 000 000 4.4. If the person of the Buyer is doubtful or cannot be established for any reason in the course or after the auction, the bidding for the item to be auctioned can be re-started. 4.5. The item already sold at the auction cannot be returned by the Buyer and re-auctioned at the same auction. At the end of the auction the Auction Buyers may ask to re-auction the items not knocked down. If in the course of or after the auction the Buyer of an auction item cannot be found and he or she does not present him- or herself, the auction item can be re-auctioned and in such a case the Auction House is entitled to claim the price difference from the original buyer. 4.6. All behaviours having fraudulent impact on the auction, bidding or hammer price or which aim at circumvention of the Auction Terms & Conditions are prohibited. The auctioneer may restrain the Auction Buyers from the auction who behave in a prohibited way. If the Auction Buyer hands over the bidding paddle to another attendee in the course of the auction and such attendee makes a winning offer or offers, the Auction House may refuse contracting with such a winning bidder and may enforce all its damages and costs against the person who illegally handed over the bidding paddle. 4.7. Such an Auction Buyer who made the highest bid (knocked down) at the previous occasion but failed the deadline for paying the deposit or the full purchase price and/or violated his or her other obligations set forth in the Auction Terms & Conditions may be detained from taking part in auction(s) in the future or his or her participation in the auction as a bidder may be bound to presenting a preliminary financial guarantee. The same provision relates to the representative of the Auction Buyer and the Auction Buyer represented by him or her; and in such a case the Auction House is not obliged to examine whether the representative or the represented person failed. 4.8. The auction bids and the full purchase price are given in Hungarian Forints, however, for information puposes, the starting price is also announced in Euros in the Auction Catalogue by the Auction House. It is also possible to pay the full purchase price in Euros at the actual exchange rate valid on the day of the Auction. 5. Conclusion of the sales contract 5.1. The sales contract ? along with the codicils according to points 5.2 and 5.3 ? will be concluded between the Auction Buyer who placed the highest bid and the Auction House at the time of the knock down which fact is confirmed by the parties through filling out the ?knockdown document.? The Buyer obtains the ownership of the item to be auctioned when he or she has paid the full purchase price and taken over the item from the Auction House. 5.2. Pursuant to Section 51§(1) of the Act LXIV of 2001 on protection of the cultural heritage the ownership title of cultural goods qualified as ?protected? (items in the Catalogue with marking ?protected?) can be transferred by a written contract only. The written contract shall be concluded immediately after the auction. Any changes in the data concerning cultural goods qualified as protected ? and included in the decision on protection (owner?s name and address; place where the protected item is held) shall be submitted by the owner without delay but at the latest within 8 days counted from the data of such information became known by the owner to the Cultural Heritage Protection Office. In case of a commercial transfer of title - especially at an auction - of cultural goods qualified as protected the Auction House also has a reporting obligation. 5.3. Pursuant to Section 51§ (4) of the Act LXIV of 2001 on protection of the cultural heritage, the Hungarian State shall have a right of pre-emption during a commercial transfer of the title of protected cultural goods, and accordingly Buyer shall only obtain the title of the auction item if the Cultural Heritage Protection Office acting on behalf of the Hungarian State does not intend to exercise its pre-emption right. 6. Full purchase price 6.1. The full purchase price is the aggregate amount of the hammer price and the auction commission, as well as any other tax or contribution required by the law. 6.2. At his or her choice, the Buyer may pay the Full Purchase Price or at least 20% thereof as a deposit either in cash or by bank card immediately to the Auction House. Buyer shall pay the part of the full purchase price in excess of the deposit within 3 working days counted from the date of auction. If payment is made by the due date the deposit shall be included in the purchase price. If the Buyer refuses to sign the ?knockdown document? or refuses to pay the deposit or does not pay the Full Purchase Price by the due date, the Auction House shall have the right to desist from the sale. In the case of desisting the Buyer shall not be entitled to recover the deposit. If the Auction House does not desist from the sale, it is entitled to claim the default interest due pursuant to the Civil Code (Ptk.). 6.3. If the auction is successful, the Auction House shall be entitled to receive an auction commission fee in the amount of 20% of the hammer price. 6.4. In the cases set forth in particular rules of law, the Buyer may also have other payment obligations simultaneously with payment of the Full Purchase Price. In this respect the legal regulation effective at the time of conclusion of the sales contract shall govern. 7. Handing over of the auction item 7.1. If Buyer has paid the full purchase price, he or she can take over the auction item at the place of the auction. 7.2. Simultaneously with payment of the full purchase price the Buyer shall provide for the shipment of the purchased piece of art within 3 working days counted from the date of auction at his or her own costs and risk. The Auction House is not obliged to ensure safety packaging for the piece of art and it carries out special wrapping at the Buyer?s request and costs. If the Buyer fails to meet his or her shipment obligation, the Auction House shall not be responsible for the damage or loss of the piece of art and the Auction House shall be entitled to charge the Buyer with a storage fee that amounts to 0.2% per day of the Full Purchase Price as from the third day after the date of auction. The storage fee shall be due simultaneously with entering into possession. 7.3. Should Buyer fail to carry away the object, despite a summons to do so, the Auction House may, after expiry of a 6 months period, desist from the contract ? with keeping the deposit ? and may lay a claim for damages (among others the auction commission fee and the costs incurred). The Auction House manages the part of the purchase price above the deposit paid by the Buyer and the damages paid as an interest-free deposit to the benefit of the Buyer until the expiry date of the period of prescription and the Auction House pays it at the Buyer?s written request. 8. Absentee Auction Buyers 8.1. If the Auction Buyer does not wish to be present in person at the auction, then, on the basis of the buying order issued by him or her, the Auction House shall submit the bids on behalf of the Absentee Auction Buyer (the Client). The Absentee Auction Buyer shall make an advance payment specified in the purchase order contract. If the purchase order is successful (with respect to the auction item the sales contract shall be concluded with the Absentee Auction Buyer as a Buyer), the amount of the advance payment, but not more than 20% of the Full Purchase Price shall be considered as a deposit and in case of execution of the sales contract it shall be included in the purchase price. With respect to any other matters (deposit, deadline for payment of the purchase price, handing over the auction item, etc.), the rules relating to the Buyer being present at the auction shall be applied. with the proviso that the possible written contract (Section 5.2) shall be concluded within 3 working days simultaneously with payment of the Full Purchase Price at the latest. 8.2. If for the same auction item a purchase order of a higher amount is given by a third party or the Auction Buyers present a higher bid, moreover, if the bidding step identical with the limit of the Absentee Auction Buyer falls on another bidder, the Absentee Auction Buyer shall recover the full amount of his/her advance payment without any deduction after the auction. 8.3. Pursuant to Sections 8.1 and 8.2 the Auction House also allows bidding by telephone. Clients may apply for bidding by telephone until not later than 14 hours (2 p.m.) on the day of the auction. A precondition of acceptance of the application to the auction is making the advance payment specified in Section 8.1. 8.4. The Auction House does not undertake any liability concerning the implementation of the purchase order and/or the bidding by telephone. 9. Liability 9.1. The hammer price develops based on the public purchase bids of the Auction Buyers and for this reason the Auction House shall not be held liable for the hammer price of a given auction item. The Auction House does not undertake any liability for that it will put the same item for auction at the same price later. 9.2. The Auction Buyer shall inspect the condition of the auction item before the auction and make sure it corresponds to those included in the Catalogue. Considering this as well as the specific characteristics of the auction items to be sold (second hand items, the age of the items, etc.), the Auction House does not undertake any liability for any defects and/or deficiencies of the auction items; Auction Buyers may not present product claims for warranty against the Auction House following the auction for any defects of the auction items. 9.3. The Auction House shall be liable for the authenticity of the pieces of arts sold at the auction. In case of any first substantiated doubt learnt by the Buyer with respect to a bought piece of art, the Buyer must contact the Auction House in writing within 30 days, but at the latest within a term of preclusion of 3 years counted from the day of the auction ? with respect also to that the Buyer can claim that an authenticity test be performed or cause to be performed ? with indicating the date of the auction and the Catalogue number of the item or other particulars suitable for identification, as well as the reasons based on which the Buyer contests the authenticity of the piece of art. If two experts recognized in the particular field and accepted both by the Auction House and by Buyer jointly declare in their written statement that the piece of art is not authentic, the Auction House undertakes to pay back to Buyer the purchase price of the piece of art, against a non-encumbered return of the ownership title of the piece of art and the Buyer ensures the possession of the piece of art without laying any claim.. Should there be any damage, etc. on the piece of art, the Auction House shall be entitled to set it off against the purchase price to be reimbursed. If a third party lays a claim against the piece of art and/or against the owner of the piece of art with respect to the latter for whatever reason, the Auction House shall be entitled to suspend the procedure associated with restoring the original condition. Buyer shall pay in advance and bear the justified costs of the expertise procedures associated with the authenticity and/or extent of damage and loss of value suffered by the piece of art unless the experts, in their expertise, qualify the item as a forgery. If the Buyer intends to make use of the services of a foreign expert (institute) in the case of a piece of art of foreign origin, the parties make a decision on the person of such an expert jointly. The Buyer shall pay in advance the anticipated costs of the test to be performed abroad and/or by the foreign expert in Hungary. If it is found that the piece of art is authentic, the Buyer shall bear the costs. The same provisions apply with respect to paying in advance and bearing the costs of certification of foreign documents (expert opinion) in Hungary. The Auction House informs the Buyer of the anticipated costs without any guarantee. The costs shall be paid in advance and borne in the currency of the payment of the costs. A piece of art cannot be qualified as forgery just on the basis that it has been restored. 9.4. Buyer cannot claim that the Auction House retake the piece of art that has turned out to be a forgery, if (a) at the date of the sale by auction the description in the Catalogue was in accordance with the generally accepted expert opinions, or if the Catalogue mentioned differences between expert opinions, (b) the method used to confirm that the piece of art was a forgery was not generally accepted at the time of the publication of the Catalogue and/or when no such method was known, or if the analysis would have resulted in a deterioration of the piece of art, or if the costs of the examination would have been equal to or greater than the value of the piece of art estimated by the Auction House. 10. Data protection The personal particulars of the Auction Buyers (name and address) shall not be made available to third parties, and shall not be made public by the Auction House. The Auction House shall delete without delay the registered personal particulars from its records after the auction, except for the particulars of the Buyer of the given auction item, provided that such particulars are required for the execution of the sales contract, and/or in other cases required by the law. 11. Miscellaneous provisions Considering the issues not regulated herein the provisions of the Hungarian laws and the effective Hungarian rules of law are governing. Should any of the provisions of these Auction Terms & Conditions be invalid or ineffective due to changes in law, the affected provision shall automatically be replaced by the provision of the new law. In case of a legal dispute, parties recognize the jurisdiction of the Courts in Hungary. The affected parties accept that the Auction Terms & Conditions constitute an essential content part of the sales contract without any separate declaration of any and all of the parties. 12. To the attention of foreign Buyers Act LXIV of 2001 regulates the shipment of cultural goods abroad. Cultural goods may only be shipped abroad finally with the license granted by the Cultural Heritage Protection Office. At request, the Auction House provides information about the company that may assist shipment of piece of arts abroad from Hungary (licensing, packaging, customs clearance, and shipment).

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