Decision of the Standing Committee of the National Peoples Congress on Amending the Auction Law of t

fers 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 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 b

inding 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.

　　Chapter Ⅳ

　　Auction Procedures

　　Article 41 When a client authorizes auction of articles or goods or property rights， he shall provide his identity certificate and， as required by the auctioneer， the ownership certificate for the objects of auction， or certificates and any other materials testifying that he may dispose of the objects of auction according to law.

　　Article 42 The auctioneer shall verify the relevant certificates and materials provided by the client. When an auctioneer accepts authorization， he shall sign a contract for authorization of auction with the client.

　　Article 43 The auctioneer may have the objects of auction evaluate ， if he deems it necessary.

　　Where the conclusion of the expert evaluation does not conform to the descriptions of the auction as specified in the contract for authorization of auction， the auctioneer shall have the right to demand modification or cancellation of the contract.

　　Article 44 In a contract for authorization of auction， the following particulars shall be specified：

　　（1）name of title and address of the client and auctioneer；

　　（2）title， specifications， quantity and quality of the object of auction；

　　（3）reservation price offered by the client；

　　（4）time and place of the auction；

　　（5）time and manner of delivery or transference of the object of auction；

　　（6）commission， manner and time limit for its payment；

　　（7）manner and time limit for payment of the purchase；

　　（8）liabilities for default； and

　　（9）other matters as agreed upon between both parties.

　　Section 2

　　Announcement of Auction and Display of Objects of Auction

　　Article 45 The auctioneer shall announce the opening of an auction seven days prior to the date of auction.

　　Article 46 In the announcement of auction， the following particulars shall be specified：

　　（1）time and place of auction；

　　（2）objects of auction；

　　（3）time and place for display of the objects of auction；

　　（4）formalities to go through for participating in bidding； and

　　（5）other matters that need be announced.

　　Article 47 Announcement of an auction shall be released through newspapers or other media.

　　Article 48 The auctioneer shall display the object of auction prior to the auction sale and provide relevant information and conditions for bidders to check the objects of auction.

　　The duration of display shall be not less than two days.

　　Section 3

　　Execution of Auction

　　Article 49 The auction master shall announce the auction rules and points for attention before the auction takes place.

　　Article 50 Where th

ere is no reservation price for an object of auction， the auction master shall maker it clear before the auction sale.

　　Where there is a reservation price for an object of auction and the highest price offered by a bidder does not reach the reservation price， the offer shall be non-binding and the suction master shall suspend the auction sale of the said object.

　　Article 51 When the highest offer is confirmed by the auction master by knocking the gavel or any other way of public confirmation， the auction transaction is concluded.

　　Article 52 After a transaction is concluded， the vendee and the auctioneer shall execute a written confirmation.

　　Article 53 When an auction sale is under way， minutes of auction shall be made and signed by the auction master and the recorder， as well as the vendee if a transaction is concluded.

　　Article 54 The auctioneer shall properly keep the complete set of account books relating to business operation， the auction minutes and any other relevant materials.

　　The period for maintaining the account books， auction minutes and other relevant materials as specified in the preceding paragraph shall be not less than five years， counting from the date of expiration of the contract for authorization of auction.

　　Article 55 Where it is necessary to make changes in certificates or licenses or to transfer ownership of property rights， in accordance with law， with regard to objects of auction， the client and vendee shall go through the formalities with the relevant administrative organ by producing the transaction certificate prepared by the auctioneer and relevant materials.

　　Section 4

　　Commission

　　Article 56 The client and vendee may reach an agreement with the auctioneer on the proportion of commission.

　　Where a transaction is concluded in the absence of such an agreement， the auctioneer may charge a commission of not more than five percent of the transaction price from the client and the vendee respectively. The proportion of commission to be charged shall be determined according to the principle that it is in inverse proportion to the transaction price.

　　Where no transaction in concluded， the auctioneer may charge the client the expenses as agreed. In the absence of an agreement， the auctioneer may charge the client a reasonable amount for the expenses of auction

　　Article 57 For the auction of articles of goods specified in Article 9 of this Law， where a transaction is concluded， the auctioneer may charge the vendee a commission of not more than five percent of the transaction price. The proportion of commission to be charged shall be determined according to the principle that it is in inverse proportion to the transaction price.

　　In case no transaction is concluded， the provisions of the third paragraph of Article 56 of this Law shall apply.

　　Chapter Ⅴ

　　Legal Responsibility

　　Article 58 Where a client， in violation of the provision of Article 6 of this Law， authorizes auction of articles or goods or property rights that he does not own or he has no right to dispose of according to law， he shall bear liability according to law. Where the auctioneer knowingly auctions articles or goods or property rights that the client does not own or has no rights to dispose of according to law， he shall bear joint and several liability.

　　Article 59 Where a State organ， in violation of the provisions of Article 9 of this Law and w

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