TERMS OF BUYING
TERMS AND CONDITIONS
FOR THE SALE OF ARTWORKS
AT THE AUCTION
1. Main Definitions
1.1. The terms and conditions established by UAB Meno Rinkos Agentūra for the sale of artworks at the auction (hereinafter referred to as the Art Auction Rules) are binding on all bidders. By signing the registration form, the bidder irrevocably confirms that he has familiarized himself with the Art Auction Rules, has understood them, and has no comments and/or claims regarding their ambiguity, inaccuracy, and/or incompleteness.
1.2. The Auction is a public purchase-sale of objects of cultural and artistic value through an auction organized and held by UAB Meno Rinkos Agentūra (hereinafter referred to as the Auction House), where works of art are offered for sale to several persons through the Auction House and the contract for the sale-purchase of a work of art is concluded with the highest bidder (hereinafter referred to as the buyer).
1.3. The Auction House is the intermediary between the owner who has submitted the work of art to the auction (hereinafter referred to as the owner) and the buyer.
1.4. The auction administration is the auctioneer (the person conducting the auction), the auction recorder, the auction accountant, and other persons responsible for organizing and conducting the auction.
1.5. Pre-auction viewing is the public exhibition of the works of art submitted for auction, held at least two days before the start of the auction.
1.6. The bidder is a person who has registered to participate in the auction as a potential buyer of the works of art offered at the auction.
1.7. The bidder’s representative is the person who physically represents the bidder during the auction. The bidder must indicate his representative’s first and last name on the registration form, and upon arrival at the auction, the bidder’s representative must submit to the administration of the Auction House his personal identification and the bidder’s written authorization to represent him at the auction as a buyer.
1.8. The auction record is the document recording the final price and buyer for each work of art sold at the auction. The audiovisual recording made during the auction is part of the auction record.
1.9. The bidder’s number is the numbered bidding paddle that the bidder raises when bidding.
1.10. An increment is the increase in the price of the work of art being auctioned.
1.11. The catalogue is the description of the works of art submitted for auction. It specifies the author, title, year of creation, measurements, initial or estimated price of the work of art, and other data.
1.12. The certificate of authenticity is the official document of the work of art submitted for auction. It indicates the title of the object, its author, time and place of creation, technique and materials used, measurements, condition, signatures, and other data important for its identification.
1.13. The work of art, or artwork, is the artistic or cultural work or object submitted for auction and offered for sale to bidders. A work or works of art being auctioned as a single object (with a single number and price in the catalogue) may synonymously be called a lot.
1.14. The increase in price is the difference between the final (selling) price and the initial price of the work of art.
1.15. The selling price is the highest bid offered by bidders for a work of art during the auction. This price does not include the value-added tax (VAT), which is added to the selling price of the work of art. The Auction House uses the VAT margin scheme to calculate the VAT (§107 of the VAT Law of the Republic of Lithuania).
1.16. The initial price is the first price announced at the auction when starting the sale of a specific work of art. This price does not include the VAT.
1.17. The reserve price is a confidential amount higher than the initial price indicated in the catalogue. If it is not reached during the auction, the work is considered unsold. It is indicated in the catalogue by the symbol ® beside the price of a specific work of art.
2. Bidder Registration
2.1. Natural and legal persons may participate and make purchases in the auction. Natural persons participating in the auction must be at least eighteen years old. The bidder participates either personally or by telephone or through his representative or by registering an absent bidder form.
2.2. A bidder who wishes to participate in the auction with rights of purchase must register by filling out the registration form.
2.3. On the registration form, the bidder must indicate the following information: (i) a natural person – first and last name, address, telephone number, E-mail address; (ii) a legal person – name, company code, company address, VAT payer’s code, telephone number, fax number, E-mail address, Web site, and banking details as well as the first and last name, telephone number, and E-mail address of the company representative authorized to participate in the auction. On the registration form, the bidder must indicate whether he will collect the purchased work of art himself or will need transportation services, also whether he will need the services of an intermediary if the work of art is to be taken abroad.
2.4. Those who wish to participate in the auction by telephone must fill out the telephone bidder form, on which they need to indicate the numbers of the lots they want to bid on as well as the telephone number at which employees of the Auction House will be able to reach them during the auction. If the telephone number is registered in Lithuania, and the bidder is in Lithuania, the Auction House will pay for the telephone connection. If the telephone number is registered outside Lithuania, or if the bidder is outside Lithuania, he must pay for the telephone connection. The Auction House is not responsible for problems with the telephone connection.
2.5. The absent buyer form may be filled out by persons who want to buy an artwork at the auction but are not physically present at the auction event itself. On the absent bidder form, apart from the information provided on the usual registration form, the bidder must indicate the work(s) of art that he wants to buy and the highest (pre-VAT) price he is willing to pay for this work of art. At its own discretion, for purposes of record keeping, the Auction House gives a number to the absent bidder.
2.6. The registration form may be filled out online on the Web site of the Auction House, or the form in the catalogue may be filled out and sent by fax. Bidders may also register at the auction location during the pre-auction viewing or before the start of the auction.
2.7. Registration forms sent by fax or filled out online must be received no later than four hours before the start of the auction. Registration at the auction location ends ten minutes before the start of the auction.
2.8. The Auction House is responsible for the confidentiality of registration data. The information provided on registration forms will not be transmitted, transferred, or otherwise disclosed to any third parties, except as required by law.
2.9. The Auction House makes every effort to ensure that the works of art to be sold at the auction are correctly identified and that accurate information is provided about them, but it does not assume responsibility for possible errors. Bidders are strongly urged to make purchases only after closely inspecting the works they want to acquire during the pre-auction viewing and to critically evaluate their condition and authenticity. Bidders may consult experts from the Auction House or bring their own experts to the pre-auction viewing and rely on their recommendations concerning making a purchase. After a purchase has been completed, the Auction House does not accept any claims concerning the works of art that have been bought.
3. The Auction Procedure
3.1. The auction is held at the location and time set by the Auction House and indicated in the catalogue and on the Web site of the Auction House.
3.2. The Auction House provides an opportunity for all interested persons to view all the works of art at a pre-auction viewing at least two business days before the auction. Registered bidders may receive a free consultation from Auction House specialists concerning the objects to be auctioned. An appointment for an individual consultation must be made by calling one of the telephone numbers indicated on the Web site of the Auction House.
3.3. The auction starts at the designated time. Depending on the number of works of art to be sold, the auction may be held with or without a break.
3.4. The auctioneer briefly presents each work of art (author, title, year of creation) and announces its initial price. The initial price for a work of art may be increased by the following increments:
100 Lt – 999 Lt: by increments of 50 Lt;
1,000 Lt – 2,999 Lt: by increments of 100 Lt;
3,000 Lt – 9,999 Lt: by increments of 200 Lt;
10,000 Lt – 14,999 Lt: by increments of 250 Lt;
15,000 Lt – 19,999 Lt: by increments of 500 Lt;
20,000 Lt – 49,999 Lt: by increments of 1,000 Lt;
50,000 Lt – 79,999 Lt: by increments of 2,000 Lt;
80,000 Lt or more: by increments of 5,000 Lt.
3.5. When offering a bid, a bidder must clearly raise his bidding paddle with the number facing the auctioneer and loudly announce his bid.
3.6. The auctioneer repeats each bid offered. When none of the bidders offers a higher bid, the auctioneer announces the final, highest bid offered, the number of the bidder who offered it, and repeats the amount of the bid three times with a stroke of his gavel. After the stroke of the gavel, the work of art is considered sold, and the highest bid offered and the number of the bidder who offered it are recorded in the auction records.
3.7. While the works of art are being auctioned, employees of the Auction House represent by telephone the absent bidders who have filled out the relevant registration form.
3.8. If a disagreement arises between bidders present at the auction and those participating by telephone or those who have filled out the absent bidder form (e.g. numbers are raised at exactly the same time after a bid has been announced), priority is given to the person physically present at the auction. If disagreements arise between bidders about priority, the auctioneer may decide to restart the auction of the work over which the disagreement arose.
3.9. If several persons who filled out the absent bidder form make the same bid for the same work (lot), priority is given to the bidder who filled out the form earlier.
3.10. During the auction, state depositories for movable objects of cultural value are given the right of pre-emption to acquire works of art included in the register of movable objects of cultural value that are not held by state depositories but are protected by the state. When the final bid has been announced for a work of art that has cultural value, the representative of a state depository has the right of pre-emption to buy this work of art. In this case, the representative of a state depository must audibly announce his intention before the auctioning of the next work of art has begun. The representative of a state depository must be registered for the auction and physically present and have the authorization of the head of the institution to buy works of art at the auction.
3.11. In the catalogue, the symbol ® beside the price for a work means that there is a confidential reserve price. If this price is not reached during the auction, the work is considered unsold.
3.12. After the auction has ended, the bidders must return their bidding numbers to the auction administration.
3.13. At its discretion, the Auction House may introduce or revoke a ticket system for admission to the auction event and set ticket prices. Bidders who bought an artwork during the auction will be refunded the price of their ticket when they collect the work they have bought.
4.1. Immediately after the auction, the bidder who has bought a work of art must go to the table of the auction administration and get the invoice issued to him.
4.2. For each work of art sold, the auction administration issues a prepayment invoice (in two copies) that indicates the number of the work of art and the price to be paid (including VAT). The first copy of the prepayment invoice is given to the bidder, and the second is kept by the auction administration, which enters the details of the invoice into the auction records.
4.3. Invoices for absent and telephone bidders are sent by fax and/or E-mail on the next working day; they must be paid by bank remittance within five working days (including the day on which the invoice was received by fax and/or E-mail). The original copy of the invoice, together with the certificate of authenticity, will be presented when the sold artwork is collected.
4.4. Payment for a work of art may be made at the auction location by cash or bank card (Visa/Visa Electron/MasterCard/Maestro) or bank remittance to the account indicated by the Auction House no later than five working days after the auction.
4.5. When payment is made at the auction location by bank card or cash, the bidder is given a cash receipt and the work of art along with its certificate of authenticity.
4.6. When payment is made by bank remittance, the work of art is given to the buyer after the money has been received in the account of the Auction House. The bank remittance must indicate the buyer’s first and last name or the name of the company as well as the title or number of the work of art acquired.
4.7. The Auction House will not accept payment for a work of art from a third party, but only from the registered bidder who offered the highest price for an object as indicated in the auction records, unless a separate tripartite agreement was signed before the auction between the Auction House, the bidder, and the payer.
4.8. The buyer must collect his work of art within three working days after payment of the money. If the buyer fails to collect his work of art within the indicated period, he will be charged for storage of the work of art – 0.2% of the purchase price of the work of art per day.
4.9. If the work of art is to be delivered to the buyer by the Auction House, it must dispatch this work within sixty hours after payment has been received in the account of the Auction House. The Auction House will charge an additional fee for delivery, which must be paid together with the price for the purchased work of art. This amount includes all applicable costs for packing, transportation, customs, and insurance during transportation.
4.10. Together with the work of art purchased, the buyer will receive a certificate of authenticity issued by the Auction House.
4.11. Upon receiving his work of art, the buyer must sign a record book for the delivery of artworks to buyers or a similar document presented by the courier. This signature certifies that the buyer does not have any claims against the Auction House.
4.12. If a work of art is listed in state records as an object of cultural and artistic value, it will be given to the buyer together with the Regulations for the Protection of Cultural Treasures.
4.13. If a buyer wants to take a work of art (which is more than fifty years old) out of the country, he must comply with the Rules for Exporting Movable Cultural Treasures and Antiques From the Republic of Lithuania, approved by Act No. 1424 of the Government of the Republic of Lithuania on 9 November 2004, and he must contact the responsible state institution – the Department for Cultural Heritage.
4.14. If a buyer fails to pay the Auction House in a timely manner (within five working days after the auction) for the work of art he has acquired, he loses the right to participate in auctions held by the Auction House for an unlimited period of time, and his name and the amount of his debt will be publicly announced on the Web site of the Auction House and made public through other channels for the dissemination of public information chosen by the Auction House. In such cases, the Auction House may offer the work of art to the bidder who made the second last bid during the auction. The Auction House also has the right to apply to a debt collection agency or to a court to defend its violated rights according to the procedure prescribed by law. This procedure includes filing a claim demanding that the purchase-sale of the work of art be declared as having taken place and that the amounts owed be paid to the Auction House and the seller.
5. Applicable Law and Dispute Settlement
5.1. These art auction rules shall be construed, interpreted, and implemented in compliance with the laws of the Republic of Lithuania.
5.2. Any disputes arising from the terms and conditions of the auction of artworks organized and held by the Auction House, the transfer of artworks sold at the auction to buyers, and other related matters shall be settled in compliance with the laws of the Republic of Lithuania.