Section 2

Client

Article 25 A client refers to a citizen, legal person or other organization that authorizes an auctioneer to auction his or its articles, goods or property rights.

Article 26 A client may go through the formalities for authorization of auction by himself or through his agent.

Article 27 A client shall make clear the origins and defects of the objects of auction to the auctioneer.

Article 28 A client shall have the right to determine the reservation price for the objects of auction and require the auctioneer to keep it confidential.

With respect to auction of State assets, assessment of which is required by laws or the regulations of the State Council, assessment shall be made by the appraisal institution established according to law, and reservation prices for the objects of auction shall be determined on the basis of the assessment made.

Article 29 A client may withdraw the objects of auction before the auction sale commences. In such a case, the client shall pay to the auctioneer the expenses as agreed; in the absence of such an agreement, the client shall pay to the auctioneer a reasonable amount of expenses.

Article 30 A client may not participate in bidding and may not authorize another to bid on his behalf.

Article 31 Where it is agreed that the objects of auction shall be transferred by the client, after the auction transaction is concluded, the client shall transfer the objects of auction to the vendees.

Section 3

Bidder

Article 32 A bidder refers to a citizen, legal person or other organization that participates in the bidding for objects of auction.

Article 33 Where requirements for selling and buying of objects of auction are prescribed in laws or administrative regulations, a bidder shall meet those requirements.

Article 34 A bidder may take part in bidding by himself or authorize his agent to participate in it.

Article 35 A bidder shall have the right to be informed of defects of the objects of auction and the right to inspect them and to have access to information pertaining to them.

Article 36 Once a bidder bids for a price, it shall be irrevocable, and it shall lose its binding force as soon as another bidder offers a higher price.

Article 37 Bidders or bidders and auctioneers may not collude with each other out of ill intention to harm the interests of another.

Section 4

Vendee

Article 38 A vendee refers to a bidder who purchases an object of auction at the highest price offered by him.

Article 39 A vendee shall pay for the object of auction at the price agreed, failing that, he shall bear liabilities for default or, with the consent of the client, the auctioneer may put the object of auction up at auction again.

Where the object of auction is auctioned again, the former vendee shall pay the commission he himself and the client should pay for the first auction sale. Where the price for the second auction sale is lower than that for the first one, the former vendee shall make up the difference.

Article 40 Where a vendee fails to obtain the object of auction as agreed, he shall have the right to request the auctioneer or client to bear liabilities for default.

Where a vendee fails to collect the object of auction as agreed, he shall pay the storage charge incurred thereby.