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한국어The order of conducting an auction of goods plays an important role in creating competition and fairness between auction participants. The goods auction process includes the following steps: Announce and list the auction, register to participate in the auction, open the auction, introduce the auctioned goods, conduct the auction and close the auction price. Hereafter, Bi Law Firm will introduce to readers in detail the order of conducting the auction of goods in accordance with the law.
1. Auction concept
According to the provisions of Clause 1, Article 185 of the Commercial Law, 2005: Goods auction is a commercial activity whereby the seller himself or hires an auctioneer to conduct the public sale of goods in order to select the right person. buy with the highest price. Auctions are conducted in one of two ways: Bid Up or Bid Down
See more >>> General information about auction activities
2. The order of conducting the auction of goods down to auction.
Pursuant to Articles 196, 199 and 201 of the Commercial Law 2005.
The auction shall be conducted in the following order:
Step 1: Announce and list the auction
At least seven working days before the auction of goods, the auction organizer must post the auction at the place where the auction is held, the place where the goods are displayed and the place where the organization’s head office is located. auction in accordance with the law.
Step 2: Sign up to participate in the auction
Auction organizers may require those who wish to participate in an auction to register to participate before the auction. The auctioneer may require auction participants to pay a down payment, but not exceeding 2% of the starting price of the goods being auctioned.
Step 3: Opening of the auction
The auctioneer takes attendance of people who have registered to participate in the auction of goods;
Step 4: Introduce auctioned goods and answer auction participants’ questions
The auctioneer introduces each auction item, repeats the starting price, answers the questions of the auction participants and asks the auction participants to bid;
Step 5: Auction participants proceed to bid for the goods
- For the up-bid method, the auctioneer must clearly and accurately repeat the last bid at least three times higher than the previous bid, at least thirty seconds apart each time. . The auctioneer may only announce the buyer of the auctioned goods, if, after three repetitions of the price he has paid, no one bids a higher price;
- For the put-down method, the auctioneer must clearly and precisely repeat each bid that was lowered below the starting price at least three times, at least thirty seconds apart. The auction operator must announce the date that the first person to accept the reserve price or the price lower than the reserve price is the person who has the right to purchase the auctioned goods;
- The auction organizer must draw a lot, if there are more than one auction participant paying the same price.
Step 6: Proceed to make auction documents
The auction operator must make a document to auction the goods right at the auction, even in the case of an unsuccessful auction. The auction document must clearly state the auction results, and bear the signatures of the auctioneer, the purchaser and two witnesses among the auction participants; for auctioned goods that must be notarized by the state according to the provisions of law, the auction documents must also be notarized.
Step 7: End the auction and pay for the purchase
At the end of the auction, the buyer pays the purchase price to the auction organizer as agreed by the parties.
The above is the order to conduct the auction of goods according to current regulations. Contact Bi Law Firm for more details.
