Terms and Conditions of Authority to Auction

The Auctioneer accepts the Owner’s authority to auction Goods on the following Terms and Conditions:

1. The authority is an irrevocable authority in favour of the Auctioneer for sale of the Goods by auction at such time or times and place or places as the Auctioneer shall determine within 2 calendar months (or such other period as may be specified on the front page of this Authority) commencing from the date of signature of this Authority which is the date appearing on the front page.

2. If the Goods or any of them are passed in at any auction held within this period or if a purchaser at auction shall default in making payment for the Goods the Owner irrevocably appoints the Auctioneer for one month from the date of the auction to act as the Owner’s agent to effect a sale of the unsold Goods to any third party either by auction private treaty sale tender or any other mode of sale provided that if the Owner has stated a reserve price for the Goods on the front page of this Authority then the Goods may not be sold by the Auctioneer at a price less than that reserve price unless authorised by the Owner or the Owner’s agent.

3. The Auctioneer reserves the right to divide and sell the Goods in separate or mixed lots and to advertise, represent or catalogue the Goods by the Auctioneer’s own description.

4. The Owner warrants to the Auctioneer that the Goods are the unencumbered property of the Owner and that the Owner is legally authorised by law to both possess the Goods and offer them for auction. Any person signing this Authority as agent for the Owner warrants to the Auctioneer his or her authority to bind the Owners to these Terms and Conditions.

5. Unless otherwise advised by the `Auctioneer’ all Goods shall be sold at a price which is inclusive of GST (if any). Where the Owner is liable for GST on the supply constituted by the sale within the terms of the Goods and Services Tax Act 1985 the Owner will on request of the Auctioneers supply the Owners GST registration number to enable the Auctioneer to issue a GST invoice on behalf of the Owner. It shall be the responsibility of the Owner to account to the Inland Revenue Department for any GST payable in respect of the sale.

6. The Owner irrevocably authorises the Auctioneer to execute on the Owner’s behalf any agreement for sale, transfer of title documentation or receipt for payment of the purchase price with respect to the sale of the Goods.

7. The Auctioneer reserves the right to bid for the Goods on behalf of any purchaser at any auction and to receive commission payments or other consideration from any purchaser with respect to sale of the Goods.

8. The Auctioneer shall be entitled to retain as additional remuneration any customary trade discounts allowed to the Auctioneer with respect to the advertising, bailment or sale of Goods.

9. The Owner hereby indemnifies the Auctioneer (including its agents, servants and appointees) for any liability incurred whatsoever for any action, omission or misdescription by the Auctioneer with regard to any matters undertaken in good faith by the Auctioneer pursuant to this Authority. Without limiting the foregoing it is expressly agreed that the Owner will indemnify the Auctioneer and its agents, servants and appointees against any liability incurred as a result of the Auctioneer’s sale of the goods as agent for the Owner or as a result of the Auctioneer’s reliance upon any information supplied by the Owner or any agent of the Owner.

10. The commission payable by the Owner to the Auctioneer will be charged at the commission rate specified on the front page of this Authority on the hammer price irrespective of any GST included in the hammer price. The Owner will in addition to the said commission pay the GST on the said commission. The Auctioneer’s commission and GST thereon is payable immediately on delivery to the Owner of the Auctioneer’s invoice or account of sale.

11. If payment of the Auctioneer’s invoice to the Owner is not made within 7 working days of delivery of the invoice the Auctioneer may charge interest at 20 per centum per annum on the invoice amount calculated from the date of delivery of the invoice to the date of payment to the Auctioneer. These provisions shall also apply with respect to any other sums that the Auctioneer properly demands from the Owner for payment for reasonable expenditure by the Auctioneer in respect of selling or storing the Goods or with respect to any other moneys recoverable from the Owner by the Auctioneer within the terms of this Authority.

12. The Auctioneer reserves the right to commission surveys and/or valuation reports on the Goods before sale. The cost of such surveys or valuations to the Auctioneer shall be recoverable from the Owner.

13. The Owner grants to the Auctioneer a general lien coupled with the power of sale over any property of the Owner in the Auctioneer’s possession or control which the Auctioneer may determine to hold or sell to satisfy unpaid moneys owing by the Owner to the Auctioneer howsoever such debt arose.

14. Any time prior to the sale of Goods the Auctioneer reserves the right to withdraw from its obligation under this Authority and in such circumstances the Owner shall be liable to reimburse the Auctioneer for expenses incurred by the Auctioneer under this Authority. If the Goods are sold at auction and the Auctioneer is of the opinion that the sale should be cancelled then the Auctioneer may cancel the sale and return to the purchaser any deposit or purchase moneys paid with respect to the sale of the Goods.

15. Where the Owner has current insurance cover with respect to the Goods.
    The Auctioneer’s liability for loss or damage to the Goods is limited to the lesser of:

    1. (a)  The reserve price set for the Goods or where no reserve is imposed the fair market value of the Goods as determined by the

       Auctioneer; or

    2. (b)  Any excess payable under any existing policy or policies of the Owner covering the Goods and under which the Owner has made

       a claim; or

    3. (c)  Any deficiency between the reserve price (or fair market value) as defined by paragraph (a) and the payment made by the Owner’s

       insurance company (if any).

    As between the Owner and the Auctioneer risk and property in the Goods remain at all times with the Owner until payment in full of any purchase price for sale of the Goods.

16. The Owner authorises the Auctioneer to sell the Goods under the current Conditions of Sale of the Auctioneers Association of NZ Inc or any other conditions of sale commonly used by the Auctioneer. A copy of such conditions is available for inspection by the Owner at the Auctioneer’s office and the Owner shall be deemed to have read and understood them. Where they conflict with this contract the contract will prevail.

17. The Auctioneer reserves the right to have any remedial work done to the Goods if in the Auctioneer’s opinion such work is required to make the Goods more saleable. The cost of such work shall be reimbursed by and recoverable from the Owner within the terms of this Authority.

18. Sale of Firearms, Motor Vehicles, Machinery etc.
    The Owner warrants to the Auctioneer that the Owner is in possession of current and valid ownership papers, licenses, permits, manuals, records and authorities as are required by law or custom with regard to the Ownership or possession of the Goods and further the Owner will promptly supply to the Auctioneer such documentation as the Auctioneer requires in selling or marketing the Goods for sale. Any transfer fee or other charge made by a governmental or local authority in connection with the sale or transfer of such Goods shall be paid by or chargeable to the Owner and if paid by the Auctioneer on the Owner’s behalf shall be reimbursed by the Owner.