How are auctions of goods organized? What is the order of conducting the auction of goods in Vietnam?
What is the auction of goods in Vietnam? How are auctions of goods organized?
Pursuant to the provisions of Article 185 of the 2005 Commercial Law in Vietnam, the concept of goods auction is defined as follows:
Auction of goods means a commercial activity whereby sellers themselves conduct or hire auction organizers to conduct public sale of goods to select purchasers that offer the highest prices.
In addition, auctions of goods shall be performed by either of the following two modes:
- Upward bidding mode, which is an auctioning mode whereby the person who offers the highest price as compared with the reserve price shall have the right to purchase the auctioned goods;
- Downward bidding mode, which is an auctioning mode whereby the person who first accepts the reserve price or the lower price next to the reserve price shall have the right to purchase the auctioned goods.
How are auctions of goods organized? What is the order of conducting the auction of goods in Vietnam?
What is the order of conducting the auction of goods in Vietnam?
Pursuant to the provisions of Article 201 of the 2005 Commercial Law in Vietnam, the order of conducting the auction of goods is as follows:
(1) The auctioneer makes a roll call of registered participants in the goods auction;
(2) The auctioneer presents each auctioned goods item, repeats their reserve prices, answer questions of the auction participants, and ask them to offer bids;
(3) As for the upward bidding mode, the auctioneer must clearly and accurately repeat the latest offered price which is higher than the price offered by the previous bidder for at least three times with an interval of at least thirty seconds. The auctioneer shall announce the winning bidder to purchase the auctioned goods only if after repeating for three times the price offered by such person, no one offers a higher price;
(4) As for the downward bidding mode, the auctioneer must clearly and accurately repeat every reduced price level below the reserve price for at least three times with an interval of at least thirty seconds. The auctioneer shall announce immediately the person who first accepts the reserve price or any reduced price level below the reserve price to have the right to purchase the auctioned goods.
(5) In cases where many persons concurrently offer the last price as for the upward bidding mode, or the first price as for the downward bidding mode, the auctioneer shall have to organize a lot drawing among such persons and announce the person who has drawn the winning lot as the purchaser of auctioned goods.
(6) The auctioneer shall have to prepare a document on goods auction right at the auction venue, even when the auction is unsuccessful. The auction document must clearly state the auction result and be signed by the auctioneer, the purchaser and two witnesses from among the auction participants. For auctioned goods which must be notarized by the State Notary according to the provisions of law, the auction document must also be notarized.
What contents must be included in a goods auction document?
Pursuant to the provisions of Clause 1, Article 203 of the 2005 Commercial Law in Vietnam, a goods auction document must have the following contents:
- The name and address of the auction organizer;
- The name and address of the auctioneer;
- The name and address of the goods seller;
- The name and address of the goods purchaser;
- The time and venue of the auction;
- The auctioned goods;
- The price at which the goods were sold;
- The names and addresses of two witnesses.
What are the rights and obligations of goods auction organizers in Vietnam?
Pursuant to the provisions of Article 189 of the 2005 Commercial Law in Vietnam and the provisions of Article 190 of the 2005 Commercial Law in Vietnam, the rights and obligations of goods auction organizers in Vietnam are as follows:
Rights of auction organizers
Unless otherwise agreed, auction organizers shall have the following rights:
- To request goods sellers to provide fully, accurately and promptly necessary information on auctioned goods, to create conditions for auction organizers or auction participants to examine auctioned goods and hand over auctioned goods to goods purchasers in cases where auction organizers are not goods sellers;
- To determine reserve prices in cases where auction organizers are sellers of auctioned goods or persons authorized by goods sellers;
- To organize auctions;
- To request goods purchasers to make payments;
- To receive auction service charges paid by goods sellers according to the provisions of Article 211 of the 2005 Commercial Law in Vietnam.
Obligations of auction organizers
- To organize auctions of goods in compliance with the principles and procedures provided for by law and by auction modes agreed upon with goods sellers.
- To notify and post up in a public, full and accurate manner necessary information on auctioned goods.
- To preserve auctioned goods when they are entrusted by sellers for safe-keeping.
- To display goods, goods samples or documents introducing goods for auction participants to consider.
- To compile documents on auctions of goods and send them to goods sellers and purchasers and relevant parties according to the provisions of Article 203 of the 2005 Commercial Law in Vietnam.
- To deliver auctioned goods to purchasers according to contracts for provision of goods auctioning services.
- To carry out the procedures for transferring ownership rights over auctioned goods which are subject to the ownership registration as provided for by law, unless otherwise agreed with goods sellers.
- To pay to goods sellers proceeds from the sale of goods, including differences collected from persons that withdraw their offered prices defined in Clause 3, Article 204 of the 2005 Commercial Law in Vietnam or return unsold goods to goods sellers according to agreements. In case of no agreement, to pay money to goods seller within three working days after receiving money from goods purchasers, or to return the goods immediately within a reasonable time after auctions.
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