Conditions of Sale
Holsteiner Foal Auction Sale on 12th June 2021
I. Organizer of the public auction is the Holsteiner Verband Vermarktungs- und Auktions GmbH, Elmshorn, Westerstraße 93 – 95, 25336 Elmshorn. The Holsteiner Verband Vermarktungs- und Auktions GmbH, Elmshorn, organizes a foal auction with a publicly authorized and sworn-in auctioneer put in charge of selling the foals at auction. Exhibitor is the owner of the foal.
II. The foals described in the catalogue are sold in a public auction in the name and for the account of the exhibitor according to section 383 (3) BGB (German Civil Law). When a foal is purchased at auction the agreement for sale is between the exhibitor/seller and the successful bidder/purchaser. The organizer would like to point out that a 5 – 13 % agency fee, depending on the knock-down price, will be charged from the exhibitor for the organizer’s acting as an agent.
III. Upon having a foal admitted to auction, the exhibitor accepts the conditions of sale. By participating in the bidding process, any bidder accepts the conditions of sale.
I. During the auction the foals will be presented in hand. The prices are called in euros with the minimum starting bid at 4,000 €. Only increases of at least 200 € will be accepted.
II. Any doubt as to the validity of the knock-down has to be asserted at once. At the discretion of the auctioneer in charge, the bidding for a horse can be reopened and continued. This is admissible even if the purchase note has already been signed but must be effected at the latest by the final fall of the hammer for the last foal. Doubts as to the validity of the knock-down may only be asserted by a person bidding for the foal in question, the auctioneer, or the organizer, represented by the executive director. Disputes as to the validity of the knock-down are decided by a commission comprising the auctioneer, the executive director of the Holsteiner Verband Vermarktungs- und Auktions GmbH and the chairman or second chairman of the Verband der Züchter des Holsteiner Pferdes e.V. by simple majority. An immediate assertion of doubt is no prerequisite for a judicial review as to the validity of the knock-down.
III. In the event that the purchase note is not completed in full or duly signed by the purchaser, bidding for a foal can be reopened according to the auction management’s best judgement. The first purchaser is liable for any possible deficiency or loss.
C. Settlement, Payment and Transition of Property
I. Knock-down prices are net prices. The price payable by the purchaser to the seller/exhibitor is the knock-down price plus VAT (= purchase price). The VAT raised on the knockdown price depending on the seller’s status is 0% (private sale), 10.7 % (flat-taxed farmer) or 19% (trader/ farmer opting for standard taxation). For each foal, the applicable tax rate is stated in the catalogue. The VAT rate is stated as declared by the exhibitor. The H.V. Vermarktungs- und Auktions GmbH does not assume liability for this statement.
II. The Holsteiner Verband Vermarktungs- und Auktions GmbH, Elmshorn fee for acting as an agent is 6 % of the knock-down price (net) plus 19 % VAT, payable by the purchaser.
III. The Holsteiner Verband Vermarktungs- und Auktions GmbH, Elmshorn has arranged an obligatory insurance with the Vereinigte Tierversicherung for any foal put to auction (compare E) at a charge of 1.7 % of the gross price plus insurance tax, payable by the purchaser.
IV. In agreement with these specifications, the amount due by the purchaser will be calculated as follows:
“knock-down price“ (net)
+ VAT (depending on seller’s taxation status, 0 %, 10.7 % or 19 %)
= subtotal 1 (= selling price)
+ buyer’s premium at a rate of 6 % of the knock-down price (net)
+ VAT (19 %) on the buyer’s premium (according to sections 12, 2 UStG)
= subtotal 2
subtotal 1 and 2 (selling price + buyer’s premium) = gross price
+ 1.7 % insurance premium on gross price
+ insurance tax (19 %)
= TOTAL INVOICE AMOUNT
V. The total invoice amount is payable immediately after the knock-down and must be settled in cash or by check at the auction office or transferred to the H. V. Vermarktungs- und Auktions GmbH’s UniCredit account.
VI. The foal in question remains in the property of the exhibitor in agreement with section 449 BGB until the total invoice amount has been paid to the H. V. Vermarktungs- und Auktions GmbH; in the event of payment by cheque or money transfer, passage of title is effected by the unconditional crediting of the total invoice amount to the H.V. Vermarktungs- und Auktions GmbH account with the UniCredit Bank, Elmshorn.
VII. In the event that the purchaser does not pay the total invoice amount within five working days (including Saturday) after the day of the auction, the seller may withdraw from the purchase contract and sell the horse elsewhere. The first purchaser is liable for any loss and also liable to pay damages to the organizer.
VIII. The exhibitor transfers their claim against the purchaser for payment of the selling price (knock-down price + VAT) to the organizer, the H.V. Vermarktungsund Auktions GmbH, Elmshorn, for collection and settlement. In the event of delayed payment by the purchaser, the organizer does not advance funds to the exhibitor. In the event of delayed payment, the organizer is authorized to take action for payment of the selling price and the ancillary claims against the purchaser on behalf of the exhibitor without requiring the exhibitor’s special order. The costs for the judicial assertion of the claim are born by the exhibitor.
IX. The organizer of the auction sale should like to point out that she reserves the right to pay a commission to third parties causally involved in the conclusion of the purchase contract from the agency fee.
D. Collecting the Foal and Passing of Risk
I. The purchaser must collect the foal no later than six month after the foal’s birth at the seller’s residence. Until then, costs for upkeep including vet and farrier are born by the exhibitor/seller. Seller and purchaser may bindingly agree upon a later date of collection, incurring customary livery costs. Exhibitor/seller und purchaser have to agree upon a date for collecting the foal.
II. A prerequisite for collecting the foal is that it has been examined by an equine veterinary surgeon commissioned by the seller and has been declared free from defects. As far as possible the purchaser should be present during the veterinary examination. In the event that the purchaser is prevented for any reason, a veterinary certificate stating the result and findings of the examination must be submitted to the purchaser immediately.
III. With the foal declared free from defects and ready for collection, passing of risk to the purchaser will be effected. Provided that the purchaser is a consumer, passing of risk is effected by delivery to the purchaser.
IV. A foal declared ready for collection which is not immediately collected, will incur customary daily livery costs payable to the seller/exhibitor by the purchaser. The purchaser must be notified of these costs beforehand.
V. If a foal has been purchased by several persons jointly, these persons share the liabilities arising from the purchase at auction (purchasing price, collecting, etc) towards the seller/exhibitor as joint and several debtors. Moreover, the purchasers are considered as joint creditors regarding their claims arising from the auction transaction, entitling the seller/exhibitor to deliver to any of the purchasers.
For all foals to be put up to auction the Holsteiner Verband Vermarktungs- und Auktions GmbH, Elmshorn, has arranged an obligatory insurance with the Vereinigte Tierversicherung (VTV) based on the following conditions:
I. Insurance coverage takes effect with the knock-down.
II. Insurance coverage of the foal expires with the delivery to the first buyer/ young stock producer’s stable at the latest on 31 December 2021.
III. The indemnity to be granted is 80 % of the particular insurance sum (up to max. 50,000.00 €) minus possible realisation proceeds. In the case of damage the Holsteiner Verband Vermarktungs- und Auktions GmbH, Elmshorn, and the insurance company (VTV) must be informed without delay.
IV. For detailed terms and conditions we refer to the information given by the VTV insurance company on page XX.
F. Liability and Limitation
I. Purchaser and seller agree on the legal and factual nature of the foal as described below:
1. Information stated in the catalogue as to pedigree and age, as well as sex and colour.
2. The physical condition as stated in the certificate of examination issued by auction’s equine veterinary surgeon. This certificate states the physical condition at the moment of knock-down. Any further written or verbal statement by the veterinarian or representatives of the organizer shall not incur liability.
II. In order to claim warranty on the auction purchase, any notice of defects has to be submitted in written form to the exhibitor/seller by the purchaser.
III. Liability for deficiencies or other damages after passing of risk is limited to two years in case the seller is an entrepreneur (section 14 BGB) and the purchaser a consumer (section 13 BGB) and to one year in all other cases.
IV. The liability limitations and exclusions do not extend to liability claims as to damages of life, body or health resulting from negligent breach of duty by the seller or the Holsteiner Verband Vermarktungs- und Auktions GmbH or wilful or negligent breach of duty by a Holsteiner Verband Vermarktungs- und Auktions GmbH legal representative or vicarious agent.
The liability limitations and exclusions do not extend to liability claims as to other damages resulting from gross negligent breach of duty by the Holsteiner Verband Vermarktungs- und Auktions GmbH or a Holsteiner Verband Vermarktungs- und Auktions GmbH legal representative or vicarious agent.
G. Changes, Applicable Law, Place of Jurisdiction, Severability Clause
I. Holsteiner Verband Vermarktungs- und Auktions GmbH and auctioneer reserve the right to alter the proceedings and schedule of the event. Alterations will be announced in due time.
II. German Law shall apply under exclusion of the United Nations Convention on Contracts for the International Sale of Goods (GISG).
III. Place of jurisdiction for all conflicts arising out of the contract between purchaser and organizer, the Holsteiner Verband Vermarktungs- und Auktions GmbH, shall be the organizer’s registered seat provided that the purchaser is a merchant, a legal entity governed by public law or specialized agency subject to public law or the purchaser has no place of general jurisdiction in Germany.
IV. In the event that any or several of the conditions stated above should be or become void, this shall not affect any other conditions.
In case of doubt, the German version of the conditions of sale is given priority to the English translation.
If the auction cannot be carried out for reasons beyond the organizer’s responsibility (order by authority, for instance), there will be no liability for damages arising thereof, no matter what kind.