1.1. In these rules the terms are used in the following meanings:
Auction - the process of organizing and conducting of a public sale (auction) of the items, including art objects and collectibles, after which the Bidder of the auction, who in accordance with these Rules and conditions, has offered the highest price for an item, becomes its owner. Auction price - the highest price offered during the auction and fixed with a gavel of the Auctioneer as the final price of a Lot in the public sale at the Auction. Absentee Bidder - the Bidder who is not present in person in the room during the bidding at the auction but is participating in the auction under the preliminary offer to acquire a Lot (Absentee Bidder who has made a written request) or by calling (Absentee Bidder on the phone). Auctioneer – a person authorized by the Organizer who represents the Organizer at the auction and provides guidance to the process of bidding at the auction in accordance with these Rules. Lot (Object of Bidding) – an item, defined in accordance with these Rules, including a piece of art or collectibles, which is offered for sale at the Auction, or a few things that are offered for sale at the Auction as a whole. Card number - an object with the help of which the Bidder takes part in the Auction, where an individual number of the Bidder is indicated. Organizer of the Auction - "Korners" Auction house, which provides the organization and conducts the "Korners" Auction. Buyer - the Bidder who, in accordance with these Rules, while bidding at the Auction implemented his intention to acquire a Lot and offered the highest price for it. Pre-auction exhibition - an open exhibition of the Lots offered for sale at the Auction. Buyer’s Bonus - payment from a Purchaser to the Organizer for organizing and carrying out trades on their purchased Lot, which is calculated as a percentage of the Auction price of such a Lot in accordance with these Rules. Seller’s Bonus - payment to the Organizer from the Seller for the organization and conducting of bidding to sell the Lot, which is calculated as a percentage of the auction price of the Lot in accordance with these Rules, taking into account the contract with the Organizer. Seller – a participant of the Auction, who has concluded an appropriate contract with the Organizer and at his initiative the Object of trading is offered for sale at the Auction. Selling price - the price at which the Buyer purchases a Lot by results of the Auction according to a contract of sale, which consists of the auction price and the Buyer’s Bonus. Opening bid – a price of a Lot agreed with the Organizer and the Seller and announced by the Auctioneer, and after that trading at the Auction begins. Bidder - fully capable individual, as well as a capable artificial person who has a contractual relationship with the Organizer and has the intention to alienate or purchase a Lot at the Auction. Public sale participant – a Bidder who has the intention to purchase Objects bidden at the Auction and registered to bid at the Auction in accordance with these Rules. Estimate - the approximate market value of the Lot, which is indicated in the Auction Catalogue.
1.1.1. The other terms as well as the above terms of different meanings may be used in the text of these Rules. 1.2. These Rules are brought to the notice of the persons concerned in the form of an offer to join them as Participants of the Auction. 1.2.1. These Rules are mandatory for persons who are Participants of the Auction, and (or) transact business against the Objects of bidding. 1.3. The division of these Rules into the sections and paragraphs is conducted exclusively for the convenience of their perception and understanding. 1.3.1. The section titles in the Rules can not give evidence to the exhaustiveness of presentation in them of the respective positions and of the absence of such positions (including exceptions from them) in other sections of the Rules. 1.4. The article of the public sale at the auction is the right for the transaction concerning paid-up and unconditional purchasing of the Object of bidding in accordance with the terms of these Rules. 1.5. The involvement of the person into the Auction (by means of offering an Object for sale or bidding in the Auction) means the acceptance by such a person of the offer to join these Rules and it also means that:
(1) the person is fully aware of these Rules; (2) the person had the opportunity to receive and has received all the necessary explanations and information relating to the Auction (the procedure of its holding) and the Object of bidding, including the data from the Organizer of the Auction; (3) the Rules (including the definitions and the terms) are known and understood to him and do not require further explanation and interpretation; (4) the person is not under a delusion concerning the type and the nature of bidding and of the associated legal relationships and transactions; (5) the person agrees to these Rules and commits oneself to implement them properly; (6) the person joins the conditions of these Rules as a whole and can not offer any other terms, except as provided in these Rules.
1.6. The official languages of the Auction (bidding), the Auction Catalogue, correspondence with the persons concerned, legal and financial documents, contracts and transactions, forms, official Internet site of the Organizer, as well as letters and messages, which can be accessed in any form or in any way, are Ukrainian and (or) Russian.1.6.1. The Bidders and other persons concerned cannot claim ignorance or misunderstanding of the Ukrainian and (or) the Russian languages as the basis of their potential claims or defenses, including the ones concerning the Organizer.
II THE ORGANIZER OF THE AUCTION
2.1. The Organizer of the Auction is the Limited Liability Company "Korners" (the Auction House "Korners", the Organizer), which is created and operates under the current legislation of Ukraine. 2.2. During the Auction on behalf of the Organizer there acts the Auctioneer and (or) the Host of the Auction (a person authorized by the Organizer who monitors compliance of the Rules while bidding at the Auction), and (or) other people authorized by the Organizer. 2.2.1. Any disagreements that may arise during the bidding are settled by the Auctioneer, whose decisions are final and are compulsory to be fulfilled.
2.2.2. During the Pre-auction exhibition, as well as during the other periods the authorized people act on behalf of the Organizer.
2.2.3. The people authorized by the Organizer (including employees of the Organizer) have adequate training and knowledge required to perform the functions of the Organizer for arranging and conducting the Auction.
2.3. The Organizer provides the appropriate conditions for the organization and conducting of the Auction, including an appropriate equipment of the sale room, arrangement of the necessary conditions for the storage, sale preparation and display of the Objects of bidding. 2.4. To organize and conduct the Auction the Organizer can create an auction commission, which may include authorized representatives of the Organizer (including employees of the Organizer), and in particular: an accountant, a cashier, a lawyer, an archivist, experts, art historians and other specialists of specific groups of the Objects of bidding. 2.4.1. The auction commission, by the decision of the Organizer may, in particular, resolve about taking an item to offer for sale at the Auction, set an Estimate to the Objects of bidding, keep a register of bidders, monitor a proper fulfillment of these Rules by the Participants of the Auction, and keep the record of the Auction, etc. 2.4.2. The membership and the privileges of the Auction Commission are determined by the Organizer.
III THE OBJECTS OF BIDDING AT THE AUCTION
The objects of bidding at the Auction (or Lots) may be: (1) art paintings, drawings and sculptures, icons, collages, photographs, maps, diagrams, etc.; (2) engravings, prints, lithographs, works of decorative art, including the products of traditional crafts and other artistic items of glass, ceramics, wood, metal, bone, cloth and other materials; (3) musical instruments, coins, postage marks, and other collectibles; (4) articles and documents related to the development of society and government, history, science, art and technology, as well as life and work of outstanding people, statesmen, politicians, public figures, etc.; (5) archival documents, including movie-, photo-, video-, audio documents;
(6) other things by decision of the Organizer.
3.1.1. The Objects can be offered for sale at the auction, regardless of time and territory of their creation, their cultural, scientific, historical, artistic or other values, regardless of the state, quality, size, performance techniques, materials used, etc., and regardless of any whatever other creative or physical characteristics. 3.1.2. The final decision on the allowance of the Objects of bidding for sale at the Auction is made exclusively by the Organizer on his discretion. 3.2. If the Object of bidding is alienated at the Auction, the alienation of property copyrights embodied in this Object (material object) of the work does not occur, unless otherwise is provided in a separate relevant contract with the Buyer. 3.3. As a general rule the Object of bidding should be owned by its owner (Seller) according to the right of private property, if the other person is not specified in the contract between the Seller and the Organizer. 3.3.1. The Organizer is entitled to demand from the Seller the evidence of the Seller's rights to sell such an Object, as well as the evidence that the Object of bidding is insured for the duration of his stay at the Organizer’s.
3.4. At the initiative of the Organizer the Object of bidding may not be allowed for sale at the Auction, and the allowed for sale Object can be withdrawn from bidding at the Auction, particularly in such cases:
(1) if it turns out that the Object of bidding is obtained as a result of archeological excavations; (2) if the Object of bidding is restricted in the civil use or expelled from the civil use; (3) if it turns out that the Object of bidding or its availability at the Auction violate the legitimate rights and interests of the third party; (4) if it turns out that the Object of bidding is an imitation of the original object;
(5) if it turns out that the Object of bidding has been stolen or got to the Seller illegally.
3.4.1. The Organizer is not responsible to the Seller or to the third party in the cases specified in paragraph 3.4. of these Rules. 3.4.2. The Seller has the right on his own initiative to withdraw the Object received from the Organizer out of the Auction at any time for any reason, time paying to the Organizer the fee of 15% (fifteen percent) of the upper limit of the Estimate (if the object is removed after the opening of the Pre-auction exhibition) or from the opening bid (if the object is removed prior to the opening of the Pre-auction exhibition). 3.5. The Objects of bidding on no account and in no circumstances, including the presence of their consumer qualities, can not be classified as goods for which the application of the law to protect the consumers’ rights is extended.
3.6. To all the Bidders it is known and understood that:
(1) the Objects of bidding, which may have been in the possession or use for a long time, can be characterized by normal wear and aging, worn, or of some other changes, which can cause non-obvious or hidden defects or varying degrees of restoration could take place;
(2) the Objects of bidding may not be suitable for their intended purpose;
(3) the Objects of bidding may require special storage or use conditions.
3.6.1. The Organizer is not responsible for the condition of the Object of bidding. 3.6.2. The Organizer is not responsible for possible future failed (after the Auction) restoration of the Objects of bidding and excludes his responsibility if it is impossible to return the Object of bidding in the state it was at the time of purchase at the Auction.
IV THE PARTICIPANTS OF THE AUCTION
4.1. In accordance with these Rules the Participants of the Auction are the Seller and the Bidder (and the Buyer). 4.1.1. One and the same person may act at the same Auction as the Seller (respectfully to the Object that is offered for sale by this person) and as the Buyer (respectfully to the Object that this person has the intention to purchase). 4.1.2. The Participants of the Auction, as provided by relationships of these Rules, have the right to act, both personally and through his representative, whose authority must be properly certified. 4.1.3. The risk of negative consequences connected with improper registration of the authorized trustee (including the case when such a person deals at the Auction or on its results) is fully laid on the Participant of the Auction whom such a person represented. 4.1.4. The organizer has the right to refuse the representative of the Bidder to participate in the Auction in case of improper official registration of such representation or in case of substantial grounds for believing such representation improperly formalized. 4.1.5. Artificial persons, except properly formalized registration of their representative, must provide a letter of guarantee to the Organizer as security for the obligation to pay the Sale Price of a Lot when it is purchased by such a person. 4.1.6. If the Bidder wishes the Organizer to represent his interests and to speak on his behalf, he must make a corresponding contract with the Organizer (or a supplement to the existing contract). 4.1.7. The Bidder is not a consumer and has no rights that are granted by the legislation on consumer protection. 4.2. A person who wishes to offer a thing belonging to him for sale at the Auction, should contact the Organizer, give a thing (a possible Object of bidding) to the Organizer and make an appropriate agreement with the Organizer. 4.2.1. After the decision of the Organizer to accept an offer for sale at the Auction, the Organizer concludes a contract with the Seller, which, together with these Rules, regulates the relationships between them. 4.2.2. Since the signing of the treaty and the act of transfer and acceptance with the Seller (which, among the other things, contains a description of the Object of bidding, including its state), the Organizer accepts the Object of bidding in deposit before the expiration of 14 (fourteen) calendar days following the date of bidding at the Auction (if the Object is not sold at the Auction). 4.2.3. The Organizer may, according to the wish of the Seller or at his own discretion, in case of doubts concerning the authenticity of the Object of bidding, expertize (make a research) with subsequent compensation of the cost of such an expertise (research) from the Seller. 184.108.40.206. The Organizer may according to the wish of the Seller or at his own discretion carry out restoration work concerning the Object of bidding with subsequent compensation from the Seller the cost of such restoration. 220.127.116.11. The Organizer may, according to the wish of the Seller or at his own discretion, design the Object of bidding (for example, the use of artistic framework) with subsequent compensation of the cost of such design from the Seller. 4.2.4. The Organizer’s storage services of the Object of bidding within a period of time defined by these Rules, as well as photography and layout in the Auction Catalogue services for the Object of bidding are not paid by the Seller additionally. 4.2.5. The Seller is obliged to take away the Object of bidding (which was not sold at the Auction) within 14 (fourteen) calendar days following the day of bidding at the Auction. 4.2.6. The Organizer has the right to refuse acceptance of the items for the Auction, for the reasons including the lack of opportunity for a good design (for example, after the date of the Auction Catalogue is in print) or due to the lack of space for such an Object. 4.3. A person who wishes to bid at the Auction must register as a Bidder for the duration of the Pre-auction exhibition (or, with the consent of the Organizer, on the day of bidding at the Auction) and receive an individual number of the Bidder, in accordance with the register of participants. 4.3.1. A person who wishes to bid at the Auction, applies to the Organizer, enclosing the information and documents that enable unambiguously identify the personality of the applicant, including: a copy of the passport and data of the citizen, the codes of the State Register of Individuals (for artificial persons - the representative's authority that is properly formalized), contact data (including address of registration and residence, phone number and email address), if I is necessary, other data or documents. 4.3.2. The main condition of participation in the Auction is the person’s accession to these Rules and acceptance of ones, as well as his agreement to follow them. 4.3.3. The organizer has the right to require from the Bidder (who takes part in the Auction for the first time or otherwise) to pay the earnest money of 500 (five hundred) conventional units. In case of purchasing the Lot the earnest money is a part of its Auction price. If the Bidder does not implement his intention to purchase a Lot at the Auction, the earnest money is returned. 4.4. If the Bidder, for whatever reason, can not be present personally in the sale room during the bidding at the Auction (Absentee Bidder), he can make a preliminary offer for the acquisition of a Lot (Absentee Bidder who has made a written request) or bid by phone (Absentee Bidder on the phone). 4.4.1. In order to implement paragraph 4. 4. of these Rules a person himself must register or send an application to the Organizer by fax or e-mail, no later than the end of the last day of the Pre-auction exhibition (the Organizer can have petition on the day of bidding at the Auction). 4.4.2. The application about bidding at the Auction of the Absentee Bidder must contain information in accordance with paragraph 4.3.1. of these Rules, as well as the indication of what kind of Lot that person wants to buy and at what maximum price (which can not be lower than the Opening bid). 4.4.3. The form (or sample) of the application for the Absentee Bidder may be in electronic form on the official site of the Organizer. 4.4.4. The Organizer has the right to require from the Absentee Bidder (who participates in the Auction for the first time, or if there are enough reasons to think about his reliability as doubtful one, or otherwise) to pay the earnest money of 10% (ten percent) of the lower price of the Estimate for each Lot, which he wishes to purchase. In case of purchasing a Lot, the earnest money is a part of its Auction price. If the Bidder does not implement the intent to purchase a Lot at the Auction, the earnest money is returned. 4.4.5. The number of the Absentee bidder is handed by the Organizer to his employee (including the Auctioneer), who takes part in the Auction on behalf of and for the Absentee bidder’s interest in a general manner and is committed to purchase specified in the application Lot for the lowest possible price as far as the Opening Bid and offers from the other bidders allow to do it. 4.4.6. If different registered Absentee bidders by a written request have offered and pointed in their applications one and the same price in relation to the same Lot, the right to purchase such a Lot belongs to the offer of the Absentee bidder who has applied earlier than the others. 4.4.7. Providing of such an application by the Absentee bidder to participate in the Auction, gives evidence of his acceptance of these Rules and acquaintance with them, as well as consent to follow them.
V ORGANIZATION OF THE AUCTION
5.1. The organization of the Auction includes the Organizer’s actions concerning the selection of Objects for Auction bidding, making contracts and (or) other necessary documents for Bidders, the formation of the final list of Objects for the Auction, the Auction Catalogue publication, the dissemination of information about the Auction, including advertising with the help of the mass media and the Internet, announcement for persons concerned about the Auction, etc. 5. 1.1. The actions referred to paragraph 5.1. of these Rules are carried out on the discretion of the Organizer with the possible involvement of the third party. 5.1.2. The Organizer is not obliged, but he has the right on his own discretion to expertize (make a research) of the Objects of bidding with honesty and circumspection that is required of him in accordance with the nature of legal relations with the Seller to establish the authorship or authenticity of the Objects of bidding. 18.104.22.168. The Organizer is not responsible for the competence of experts (specialists) and for the content of their conclusions. 5.2. For demonstration purposes and first-hand knowledge of all persons concerned with the Objects of bidding offered for sale at the Auction, the Organizer provides Pre-auction exhibition. 5.2.1. Conducting Pre-auction exhibition means that all persons concerned, including Bidders, are given complete and absolute possibility of direct examination of the Objects of bidding and familiarization with them, the possibility of their evaluation, discussion, study, research, etc. 22.214.171.124. The limitation of possibilities identified in the preceding paragraph may be made by the Organizer only to ensure the proper preservation and protection of the Objects of bidding. 126.96.36.199. Any person concerned, including the Bidder, has the right up to the moment of bidding at the Auction (on his own discretion and on his own account and under written agreement with the Organizer) to implement at the site of the Pre-auction exhibition the necessary expertise for such a person (research) of one or more Objects of bidding (with additional information about the future expert or specialist to the Organizer), which may help to decide whether to purchase the Object of bidding or not. 188.8.131.52.1. The Organizer does not accept or consider any claims that are based on the expertise (examination), which were not conducted in accordance with the requirements of these Rules, or the results of which have been known to the Bidder (or other person concerned) at the time of bidding, or if the results of such an expertise (examination) were not provided to the Organizer before the bidding at the Auction started. 184.108.40.206.2. It is prohibited to carry out the expertise (examination) of the Objects of bidding, if they make the integrity or the state of the Object of bidding is worse. 5.2.2. The Pre-auction exhibition opens no less than 7 (seven) calendar days before the announced date of the Auction sale. 220.127.116.11. The admission to the Pre-auction exhibition is open to any persons concerned during the time of the exhibition with a possible paid entrance. 18.104.22.168. The Organizer may introduce restrictions for visiting the grand opening of the Pre-auction exhibition (as well as the bidding at the Auction itself) for persons who are not specially invited and (or) are not specifically accredited. 22.214.171.124. The Organizer has the right to refuse further visits to the Pre-auction exhibition (as well as the bidding at the Auction itself) to a person who violates the public order, or is under the influence of drugs or alcohol, or whose behavior contradicts the morals of society, or whose conduct is bullying or is associated with an explicit disrespect for others, particularly impudence or exceptional cynicism, or their belongings, clothes, etc., can cause harm to the third party, including the Objects of bidding or the property and the interests of the Organizer, or the property and the interests of the third party, or if such person's actions may negatively affect the business reputation of the Organizer, etc. 5.2.3. The Bidder may not rely on the fact that he had not sufficiently got acquainted with the Object of bidding at the Pre-auction exhibition as the basis of his claims or objections. 5.2.4. The order and location of the Objects of bidding in the room, where the Pre-auction exhibition is held, is determined exclusively by the Organizer. 5.3. In order to familiarize the Bidders and other persons concerned with the Objects of bidding and information about these Objects, date, time and place of the Auction, these Rules, etc. the Organizer may ensure the publication of the Auction Catalogue. 5.3.1. The Catalogue contains essential, accessible, accurate and timely information at the time of the Auction, also the author and the name of the Object of bidding may be specified there, as well as creation date, size, material, technique of implementation, etc. 126.96.36.199. The Organizer has the right to provide such a catalogue charged to the Bidders and other people concerned for a particular price set by the Organizer. 5.3.2. Illustrations and (or) descriptions of the Objects of bidding in the Catalogue are for informational purposes only, serve to identify the Object of bidding and not always fully reflect all its characteristics, including appearance. 5.3.3. The Organizer gets the information about the Objects of bidding from their Vendors (Owners), based on the principles of fairness and reasonableness of the participants of legal relationships. 5.3.4. The Catalogue specifies a list of competent persons (experts or specialists), who expressed their competent opinion to the Organizer concerning the Objects of bidding. 188.8.131.52. Publication of the Object of bidding in the Auction Catalogue is sufficient proof of its authenticity and suggests that there is no reasonable doubt about that at the time of the Auction. 184.108.40.206. The Organizer is not obliged to provide other evidence of the authenticity of the Object of bidding (including certificates, expertise, etc.) to the Bidders (or to other persons concerned). 5.3.5. The Auction Catalogue specifies the Estimate, which is a cue for the Bidders and which is expressed in conventional units. 220.127.116.11. The Estimate is set by the Organizer and reflects exclusively his opinion about the market value of a Lot at the time of the Auction, which is based in particular on the wishes of the Seller, as well as the opinion of the experts (specialists) invited by the Organizer. 5.3.6. The order of the Lots in the Catalogue, assigning serial numbers to them, identifying of the size and location in the Catalogue are determined by the Organizer of the Auction himself. 5.3.7. The information provided in the Auction Catalogue, is available on the official Internet site of the Organizer at www.korners.com.ua (electronic Auction catalogue), location of which has the same legal effect as the Auction Catalogue in print.
5.4. The Organizer informs the Bidders about the time and place of the Pre-auction exhibition (and its duration), as well as about the time and place of the Auction, approximately thirty (30) calendar days before the Auction, in particular, as follows:
(1) on the official Internet site of the Organizer (at www.korners.com.ua);
(2) in the Auction Catalogue;
(3) in the respective promotional or informational materials, posters; (4) with the help of personal notice by telephone, e-mail or text-messages to the Bidders; (5) with the help of the mass media;
(6) with the help of other ways that allow conveying relevant information to the persons concerned.
5.4.1. The implementation of any way of notice provided by paragraph 5.4. of these Rules is considered appropriate notification of the persons concerned.
VI BIDDING AT THE AUCTION
6.1. The Organizer defines, organizes and conducts bidding at the Auction in accordance with the points of these Rules. 6.1.1. The Bidding at the Auction is conducted in the presence of at least two Bidders. 6.1.2. The Object of bidding may be alienated by the Organizer before the bidding at the Auction under the agreement with the Seller. 18.104.22.168. In case of expropriation of all the Objects of bidding until the date of bidding at the Auction, the Auction is not held. 22.214.171.124. The Organizer is not responsible for the failure of holding the Auction because all the Objects of bidding have been sold before the Auction began. 6.1.3. The Organizer has the right to forbid the attendance of the auction for the people who are not Participants of the Auction. 6.2. The time of the Auction is the time from the moment the first Lot is announced (start of the bidding) until the end of bidding concerning the last Lot (end of the bidding). 6.3. The Organizer has the right to withdraw any Lot from the Auction (even during the bidding, but before the sale of the Lot) in the cases stipulated by paragraph 3. 4. of these Rules without further explanation. 6.3.1. The Organizer is not responsible for any possible damages or losses suffered by the Bidders in connection with their intention to buy (or sell) the Lot expelled from the Auction. 6.4. The Lots at the Auction are announced and offered for sale in the same order in which they appear (are available) in the Auction Catalogue. 6.4.1. The Auctioneer announces the Lot number and its Opening bid (which may differ from the Estimate), and other information on his own discretion. 6.4.2. The Lot can not be alienated at the Auction lower than the Opening bid announced by the Auctioneer. The Organizer is not responsible for any difference between the Opening bid of the Lot and its Auction price. 6.4.3. Neither the Organizer nor the Seller is limited to the Estimate stated in the Catalogue, including in the case of alienation of the Object of bidding before the Auction begins. 6.5. Bidding at the Auction is carried out by the application of a new offer by the Bidder to purchase the Lot at a higher price and requires a Card number of a Participant. 6.5.1. The Card Number of the Participant is given by the Organizer to the Bidder before the Auction starts. 6.5.2. The Card Number of the Participant is the only means of realizing the right of the Bidders for bidding as far as the Lot is concerned. 6.5.3. If the Bidder allows the transfer of the Card Number of the Participant provided by the Organizer to the third party, he becomes fully and legally responsible for the actions of that person as for his own ones. 6.5.4. The Card Number of the Participant is the property of the Organizer and is subject to obligatory return immediately after the Auction. The return of the Card Number of the Participant may be on the discretion of the Organizer and is secured by a pledge. 6.6. Raising the Card Number of the Participant by the Bidder (which is sufficient for its examination by the Auctioneer) means an unconditional and irrevocable consent of the Bidder to purchase a Lot at the price announced by the Auctioneer (which will be an integral of the Sale price) and the adoption of the rights and obligations of the Buyer. 6.6.1. This agreement is recognized as the offer from the Bidder’s side to acquire a Lot at a price announced by the Auctioneer. 6.6.2. Each successive raise of the Card Number by the Bidder means that he has agreed to purchase the Lot at a price that is higher than the previous announced price of approximately 10-15% (ten to fifteen per cent), the pricing of the Lot remains the responsibility of the Auctioneer. 6.6.3. The Bidder has the right to offer a price of a Lot which exceeds the previous one specified by the Auctioneer. 6.6.4. The Bidder is obliged to observe silence and refrain from the actions or movements that could be regarded by the Auctioneer as an intention to raise the price of a Lot, unless the Bidder does not have such an intention. 6.7. Identification of the Bidder, who raised the Card number of the participant, is the Auctioneer’s exclusive competence, who in this case (as well as in other matters) may be assisted by the other authorized representatives of the Organizer. 6.8. The rap of the gavel made by the Auctioneer fixes his decision within his competence. 6.8.1. The rap of the gavel by the Auctioneer is made if after the third announcement of bidding in the sale of a Lot during a reasonable period of time, none of the Bidders makes a new offer price of a Lot sale. 6.8.2. After the bidding concerning a Lot is over the Auctioneer announces the fact of unconditional consent of the Bidder (Buyer) to purchase a Lot, then names the Auction price and the Card Number of the winner (Buyer). 6.8.3. The Auctioneer has the right to obtain or to refuse the rap of the gavel, if he decides that there exist interfering circumstances. 6.8.4. With the rap of the gavel by the Auctioneer the transaction in relation to a Lot is considered to be preliminary complete, that is, the Bidder (Buyer), who offered the highest price for the Lot, is obliged to pay the Sale price for this Lot (which consists of the Auction price and the Buyer's Bonus). 6.8.5. Since the rap of the gavel by the Auctioneer the bidding concerning this Lot finishes and the Bidder (Buyer) has no right to abandon the transaction referred to such a Lot. 6.8.6. Immediately after the bidding for a Lot is over, the Organizer has the right to require the Buyer to pay the deposit of 10% (ten percent) of the Auction price. 6.9. If during a reasonable time no Card Number is raised for a Lot, or there are no applications from Absentee participants, the Lot of bidding is considered to be unsold at the Auction. 6.9.1. If there are further offers from the Bidders for the acquisition of the Lot, which was considered unsold at the Auction, the Auctioneer has the right to return to the bidding concerning this particular Lot. 6.10. After bidding concerning the last Lot at the Auction and the Auctioneer’s announcement of the completion of the Auction the authorized representatives of the Auction Organizer (the Auction commission) make a record of proceedings in which the number of the Lot, which was acquired, the Opening bid and the Auction price of the Lot and the Card number of the Auction participant who purchased the Lot (Buyer) are written down. 6.11. In the relationships between the Bidders and the Organizer as well as in announcements of the Auctioneer there can be used the general term "sold", which means the sale of the Lot at the Auction. 6.11.1. Any transactions or arrangements aimed at encouraging any person to make unreasonably high bid price offer of the Lot that may cause harm to the rights and interests of the third party are prohibited. 6.12. The Object of bidding becomes the property of the Buyer, who offered the highest price since making the related bargain and sale contract, but not before the moment of the full payment for the Lot. 6.13. The items purchased at the Auction are not repayable.
VII THE ORDER OF THE OBJECTS OF BIDDING TRANSFER AND SETTLING
7.1. The deal for the purchasing of a Lot must be executed on the day of the Auction or within 14 (fourteen) calendar days following the day of bidding at the Auction.
7.1.1. The Lot sold at the Auction is transmitted only to the Buyer (or his authorized person) after making the related bargain and sale contract and the fulfillment of all the payments prescribed by these Rules. 7.1.1. The payment for a Lot by the Buyer is fulfilled on the basis of these Rules and a relevant contract with the Organizer at the rate of the Selling price, which consists of the Auction price and the Buyer’s Bonus. 126.96.36.199. If the Auction price of a Lot does not exceed 100 (one hundred) thousand conventional units, the Buyer’s Bonus is 15% (fifteen percent) of such a price. 7.1.3. If the price of a Lot exceeds 100 (hundred) thousand conventional units, the Buyer’s Bonus is 10% (ten percent) of such a price. 7.1.4. The buyer can pay for a Lot in cash (over the counter of the Organizer), as well as on account within 14 (fourteen) calendar days following the day of bidding at the Auction. 188.8.131.52. The Buyer who pays for the Lot on account must take into consideration the interest or other payments for the benefit of the appropriate financial institution for such an operation. 7.1.5. The Buyer must pick up his Lot purchased at the Auction immediately after payment, but no later than 14 (fourteen) calendar days following the day of bidding at the Auction, which is formalized with the help of the relevant act of reception and transfer. 7.1.6. Since the implementation of timely and full payment for a Lot, the Buyer carries the burden of maintenance of the Object of bidding and the risk of its accidental destruction or damage, including the case of violation of the term of obtaining this Object. 7.2. In the case of sale of the Object of bidding at the Auction the Seller pays the Seller’s Bonus to the Organizer, which is calculated as a percentage of the Auction price of a Lot in accordance with the agreement made between the Organizer and the Buyer. 7.2.1. If according to the results of bidding a Lot is not sold, the Seller pays for the services of the Organizer for the organization and conducting of the Auction in the amount of fifty (50) conventional units for each proposed item for sale at the Auction. 7.2.2. From the Seller there may be recovered cash assets as payment for the right to follow a Lot sold at the Auction (if it is object of copyright), if there is legal basis to do so, in the current legislation the amount of the Auction price in favor of the person is authorized by the law. 184.108.40.206. The Organizer can pay his own money according to his right to its further recovery from the Seller. 7.2.3. The Organizer is obliged to transfer to the Seller received from the Buyer and the Seller-owned funds in the amount of the Auction price, with the reduction of the Seller’s Bonus and other payments provided by the law, within 14 (fourteen) days of receiving funds from the Buyer. 7.2.4. The Seller, if the Lot offered by him was not sold at the Auction, is obliged to take it away within 14 (fourteen) calendar days following the day of bidding at the Auction, which is formalized with the help of the relevant act of reception and transfer. 7.2.5. In the legal relationships with the Seller the Organizer acts as a tax agent, unless otherwise provided by the law. 7.3. In these Rules, the term "conventional unit" is used for convenience. One conventional unit equals one U.S. dollar. 7.3.1. All calculations provided by these Rules are made in UAH according to the average commercial rate on the day of bidding at the Auction.
VIII THE ORGANIZER’S AND BIDDERS’ RESPONSIBILITY
8.1. None of the regulations of these Rules can be interpreted as such, which increase the amount of the Organizer’s responsibility or the Bidders’ one compared to the existing legislation of Ukraine or worsen their situation. 8.2. The Organizer is not responsible for the accuracy, completeness and trustworthiness of the information obtained from any source by the Bidders concerning authorship, the time of manufacture or creation of the Object of bidding, its size, origin, authenticity, originality, shortcomings as well as its other features or properties, etc. 8.2.1. The Organizer on no consideration is responsible to the Bidder for any of his losses suffered in connection with his intention to acquire the Object of bidding, including the costs of the services of experts (specialists), travel expenses, room and board, commission or other payments to individuals who act in his interest (including financial institutions), etc. 8.2.2. The Organizer is not responsible if, for all degree of care that was required of him under the meaning of the terms and obligations, he assumed sufficient measures for the proper performance of his part of obligations. 8.3. The Organizer is responsible only on the basis of information provided by him in the Auction Catalogue in conjunction with the regulations of these Rules, and only if there is guilt. 8.4. If during the expiration date of the action limitation, which begins from the day of bidding at the Auction, the Organizer receives a written notice from the Buyer that a Lot purchased by him at the Auction is a forgery (and the Buyer provides adequate evidence to prove it), then for 30 (thirty) calendar days after receiving such a notice (and appropriate evidence), this Object must be returned obligatory by the Buyer to the Organizer in the same condition as it was at the moment of sale at the Auction.
8.4.1. Under these conditions, the Organizer returns funds in the amount of the Auction price to the Buyer but with the following exceptions:
(1) the description in the Catalogue corresponds to the conclusion of an expert (specialist), which existed on the day of bidding at the Auction; (2) the forgery was detected by the expert (specialist), who was invited by the Buyer before the bidding at the Auction; (3) the forgery was revealed with the help of the expertise, which was technically impossible on the date of the Auction or was considered inappropriate because of its high cost, or if it could lead to a deterioration of the Object; (4) the forgery was detected with the use of scientific methods or techniques, which at the time of the Auction were not known or not applied in practice, also when carrying out expertise (research);
(5) at the time of the Auction, there were not sufficient reasons to consider a Lot fake.
8.4.2. The appropriate evidence to confirm the message of the Buyer about purchasing a fake Lot at the Auction, is only the availability of at least three opinions of qualified and competent experts for the Organizer who specialize in the study of such Objects (the Buyer understands and agrees that, for example, a specialist in Russian art can not make a qualified conclusion concerning the Object of Western European art, and vice versa), taking into account the regulations of paragraph 8.4.1. of these Rules concerning each expertise. 8.4.3. A Lot is considered to be fake, if specified during the Auction author is not a real author, or if the Lot is a copy, or it was created by another person without consent of the primary author.
8.5. If the Bidder violates the conditions of these Rules the Organizer on his own discretion has the right, in particular:
(1) to dissolve the agreement with the Bidder; (2) without dissolving the agreement to apply keeping of the Object of bidding (Lot) as the enforcement of obligations by the Bidder until the offset of debt by setting a fee for keeping the Object of bidding, including its keeping in the specialized organization; (3) to secure the repayment of debt of the Bidder to sell (alienate) the Object of bidding at the Auction or otherwise at a price and on conditions on his own discretion; (4) to take action provided by the existing legislation, to recover the debt and damages (including lost profits) out of the Bidder; (5) to convey information about the Bidder to the third party (including other Bidders) to take statutory measures to restore the violated rights and interests of the Organizer or the third party;
(6) in future to prevent the Bidder, who has previously violated these Rules from participation in the subsequent Auctions or permit such participation, using measures on his own discretion to ensure commitment.
8.6. The Bidder is responsible to the Organizer for the payment of the money owed not in full, including dissolving the agreement. 8.6.1. The Bidder for the ill-timed payment or payment that is not full pays a fine to the Organizer in the amount of 0.1% (one tenth of one percent) of the Sale price of a Lot for each day of a delay in payment of monetary obligation, but no more than double rate of National Bank of Ukraine, which operated during the period of such a delay. 8.6.2. The Buyer’s failure to pay the supposed payment of funds in accordance with these Rules all-or-any part within the prescribed by these Rules period may be regarded by the Organizer as a rejection of such a payment. 8.6.3. In case of untimely or incomplete payment of the Sale price of a Lot the Auction results of this Lot may be canceled by the decision of the Organizer 8.6.4. In any case, the Buyer bears the burden of maintenance, the risk of accidental destruction or damage of the acquired Lot; he is also responsible for any damages that may arise due to delayed payment of the Sale price of the Lot or refusal to pay it at all. 8.6.5. If the Buyer refuses to pay the Sale price for a Lot the deposit made by him is not included in the Auction price and is not refunded to him. 8.7. The Organizer is exempted from any kind of responsibility for keeping the Object of bidding, if the Bidder (the Buyer or the Seller - depending on whether there was the Auction sale or not) does not take it away within 14 (fourteen) calendar days from the day following the day of bidding at the Auction. 8.7.1. The Organizer has the right to establish a fee for the Seller for the storage of the Object of bidding further on than a defined date in paragraph 8.7. of these Rules. 8.7.2. If, within 2 (two) months from the day following the day of bidding at the Auction, the Bidder does not take the Object of bidding away, the Organizer has the right to transfer the Object for the storage to the third party, and to take recourse on such an Object to meet his property requirements. 8.8. In case of payment by the Organizer to any persons whichever payments that had to be done by the Bidder, or payment by the Organizer of any penalties or other fees due to the fault of the Bidder, the Organizer has the right to take recourse (regress) to such a Bidder who is required to satisfy this demand.
IX THE FORCE MAJEURE CIRCUMSTANCES
9.1. None of the participants of the legal relationships provided by these Rules, (the Bidders or the Organizer) is not responsible for the failure and (or) improper performance of any of his obligations according to these Rules, if the failure and (or) improper performance were exclusively due to the force majeure circumstances. 9.2. In these Rules under the force majeure event there must be understood the urgency which has arisen after the adoption of the Rules and their conditions by the Participant and independently of the will and desire of the Participant. 9.3. To force majeure according to the Rules the Participants agreed to include, in particular, such events as: the action of natural disasters and cataclysms, epidemics, war, disorder, etc., prohibitions and restrictions that result from documents of regulatory and (or) non- regulatory nature of government bodies and (or) local government, events that negatively affected the Participant’s activity. 9.4. The Bidder, for whom force majeure suddenly emerged, must urgently and no later than three (3) calendar days from the date of the occurrence of such circumstances in writing or electronically inform the Organizer (and the Organizer must inform the Participant concerned) about such circumstances and their consequences and take all possible measures to minimize negative consequences caused by force majeure. 9.5. The failure of notification or untimely notice of another participant about the occurrence of force majeure circumstances that result in loss of the right to rely on such circumstances as the basis, which exempts from responsibility for the failure and (or) the improper performance of the Rules. 9.6. The occurrence of force majeure may cause the increase in the period of performance of the conditions of the Rules for the time of their operation, if the parties have agreed beforehand about it in writing. 9.7. If the Buyer doesn’t possess the necessary documents or legal basis for taking actions to move purchased at the auction Object through the customs territory of Ukraine, this fact can not be considered force majeure, and it is also not a reason for change, cancellation or invalidation of the results of the Auction.
X CONFIDENTIALITY AND INFORMATION PROTECTION
10.1. The information contained in these Rules, as well as the information about the date, time, location and duration of the Pre-auction exhibition, the information about the date, time and place of the Bidding at the Auction, the information about the Objects of bidding (Lots), as well as the results of the Auction (Auction Prices of the Lots), other information, which is in the Auction Catalogue, is public information. Such information, if it is not distributed by the Organizer, may be freely available to all persons concerned in it after the Organizer receives the relevant request. 10.2. The consent of the Participant of the auction to these Rules and joining to them means his consent to the processing, disclosure and transfer of information available at the Organizer’s and received from such a Participant of his personal information (data) to the third party unless it is necessary for the purposes regulated with these Rules of relationships. 10.2.1. The Bidder agrees for the use and handling received from such a Bidder his personal data by the Organizer (e g surname, first name, place of registration or residence, email address, phone number, etc.), making them Customers’ database by the Organizer for the purpose of informing such Participant of the events that are related (can be related) with the activity of the Organizer and the Auction, as well as the Bidder agrees to receive such information. 10.2.2. The Organizer guarantees that disclosure of the information about the Bidder, which relates to specific transactions made as the results of the Auction (with the exception of the information about the Lot and its Auction price) is possible only with the consent of such a Bidder, except otherwise is provided by the law and is not necessary to protect the legitimate rights and interests of the Organizer. 10.3. In the room, where the Auction and (or) Pre-auction exhibition take place, without the prior written consent of the Organizer it is not allowed to do any kind of whatsoever promotions, audio, photos, film, video, and committing other actions aimed at capturing what happens during the bidding at the Auction, except for the handwritten records made by the Bidders themselves. 10.3.1. Persons who violate these standards may be removed from the Auction room, with disqualification for further bidding or attending an auction in another capacity, and the material media objects (which are supposed to be owned by the Organizer) are withdrawn from such a person with a further compensation of reasonable value of such a medium within ten (10) days to a person according to his application and without compensation of any possible related losses.
XI FINAL REGULATIONS
11.1. These Rules come into force after the date of approval by the Organizer. 11.1.1. These Rules come into force for the Participants of the Auction since its accession by them, namely, from the moment the appropriate agreement with the Organizer (for the Seller) and the filing of the application to participate in the Auction for the Organizer (for the Bidder) and operate until a full and proper execution of obligations to the Organizer. 11.2. The Organizer has the right to modify and (or) to cancel any regulations of these Rules in whole or in part as before the date of accession of the Bidders and after it. 11.2.1. The Organizer provides the valid version of these Rules to the attention of all persons concerned on his Internet website www.korners.com.ua, as well as at the location of the Organizer. 11.2.2. The Organizer provides the valid version of these Rules to the attention of all persons concerned, at the time of the Auction, in the Auction Catalogue. The Organizer reserves the right to place the abbreviated version of the Rules in the Catalogue (extract). 11.3. The Organizer does not guarantee that the Objects of bidding, purchased at the Auction, should be removed from the territory of Ukraine. 11.3.1. The Organizer does not guarantee that the exhibited or purchased at the auction Objects of bidding which were previously imported into the territory of Ukraine, were moved with the observance of national or international law. 11.4. The Organizer has the right, but not obliged, at his own expense to insure his business risks, transactions that are conducted on the basis of the Rules, as well as the Objects of bidding. 11.5. Any disagreements or misunderstandings relating to the organization or holding of the Auction, or concerning compiling or fulfillment of the Auction transactions are settled through negotiations.
11.5.1. If it is impossible to reach the agreement through negotiations, the dispute is submitted to the competent court in accordance with Ukrainian legislation.