What is the upward bidding mode of the auction of goods in Vietnam? How to handle the cases where many persons concurrently offer the last price as for the upward bidding mode?
- What is the upward bidding mode of the auction of goods in Vietnam?
- How to handle the cases where many persons concurrently offer the last price as for the upward bidding mode in Vietnam?
- In the cases where the highest price offered is lower than the reserve price, for the upward bidding mode in Vietnam, is it considered an unsuccessful auction?
What is the upward bidding mode of the auction of goods in Vietnam?
The auction of goods is explained in Article 185 of the Law on Commercial 2005 as follows:
Auction of goods
1. 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.
2. Auctions of goods shall be performed by either of the following two modes:
a/ 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;
b/ 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.
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;.
Where:
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.
What is the upward bidding mode of the auction of goods in Vietnam? How to handle the cases where many persons concurrently offer the last price as for the upward bidding mode? (Image from the Internet)
How to handle the cases where many persons concurrently offer the last price as for the upward bidding mode in Vietnam?
In cases where many persons concurrently offer the last price as for the upward bidding mode, it will be handled according to the provisions of Article 201 of the Law on Commercial 2005. To be specific:
Conducting of auctions
An auction shall be conducted in the following order:
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.
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.
In the cases where the highest price offered is lower than the reserve price, for the upward bidding mode in Vietnam, is it considered an unsuccessful auction?
Unsuccessful auctions are stipulated in Article 202 of the Law on Commercial 2005 as follows:
Unsuccessful auctions
An auction shall be considered unsuccessful in the following cases:
1. There is no auction participant or no bid price is offered;
2. The highest price offered is lower than the reserve price, for the upward bidding mode.
If the highest price offered is lower than the reserve price, for the upward bidding mode, the auction shall be considered unsuccessful.
in addition, if there is no auction participant or no bid price is offered, the auction shall also be considered unsuccessful.
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