The parties involved in the auction include: auctioneer, client, bidder, buyer.
Auctioneer is a corporate entity established in accordance with the Auction Law of the People's Republic of China and the Company Law of the People's Republic of China to engage in auction activities.
Client is a citizen, legal person or other organization that entrusts the auctioneer to auction items or property rights.
Bidder is a citizen, legal person or other organization that participates in the bidding for the auction object.
Buyer is a bidder who purchases the auction object at the highest bid. "Bidder" and "buyer" are sometimes collectively referred to as buyers.
The client of the auction object entrusts the company to sell the items or property rights owned by him or disposed of according to law by auction.
Accrued expenses are the corresponding expenses charged by the company to both the client and the buyer for insurance, catalog publication, packaging and transportation, cultural relics sealing wax, appraisal and valuation, etc. as appropriate.
The transaction price is also called the "hammer price", which refers to the price at which the auctioneer decides to sell the auction object to a certain buyer when the hammer is dropped at the auction.
The reference price is also known as the "estimated price", which refers to the price of each auction item in the auction catalog printed by our company. This price is determined by our company and is not the final selling price.
The auction reserve price is also known as the "reserve price", which refers to the lowest selling price agreed upon by our company and the client for the auction item entrusted by them and indicated in the letter of entrustment.
The auction item refers to the auction item that has been sold at auction.
The commission is also known as the "agency fee", which refers to the service fee charged by our company to the client and the buyer after the transaction is completed in accordance with the relevant laws and regulations.
The auction proceeds refer to the net amount of money paid by our company to the client for the sale of the auction item after the auction is completed, that is, the balance after deducting the commission and the accrued expenses payable by the client from the transaction price.
Function of auction: It is an on-site transaction between a seller (auction house) and multiple buyers (bidders), allowing different buyers to compete for high prices for the same item or property rights, thereby discovering its true price and scarcity in the auction bidding, avoiding subjective arbitrariness in transactions, more directly reflecting market demand, and ultimately realizing the maximum value of the goods.
