Consignment Agreement

Owner of item or items, __________________, understands and agrees to the terms and conditions of this Consignment Agreement entered into this _____ day of _________, 2009.

(1)   Limitation of Liability. Owner acknowledges and understands that Brown’s Auction Company is not responsible for any physical damages, loss, or mechanical failure which might occur to the equipment while in their possession. Furthermore, Brown’s Auction Company is not responsible to pay the owner for any item a bidder may bid on and now pay for.

(2)   Owner Guaranty/Warranty. Owner hereby warrants that the described property is free and clear of all Liens, Mortgages, or Other Encumbrances and that Brown’s Auction Company is authorized to sell this equipment at public auction. 

(3)   Breach of Agreement by Owner. If there is a breach of contract, owner agrees to pay Brown’s Auction stated commission and advertising costs on said equipment.

(4)   Terms and Conditions.

(a) Owner will present Brown’s Auction Company with any titles or deeds necessary for transfer of equipment immediately upon entering the item, equipment, vehicle, boat, and/or any other object that may be subject to this Consignment Agreement

(b)   Owner agrees to have equipment at sale site 5 days prior to sale and agrees to remove any unsold items from sale premises within three (3) business days after sale, unless other arrangements are made with Brown’s Auction Company at time of sale.

(c)    Notwithstanding any other provisions of this agreement, if Owner violates provision (4)(b) of this agreement, Owner will charged a storage fee of $___.__ per day until said item picked up by owner. Furthermore, if Owner does not pick up said unsold items within ten (10) days of the next quarterly auction, said unsold item will be advertised, auctioned, and sold without reserve at the subsequent quarterly auction, with the Owner being entitled to and receiving the sales price at the second auction, minus storage, advertisement, and the auction premium for any and all auctions for which said item eventually sold.  Owner initials: ______

(d)   Brown’s Auction Company reserves the right to be compensated for any loss.

(e)    Seller assumes responsibility not to withdraw said item, equipment, vehicle, boat, and/or any other object that may be subject to this Consignment Agreement, for which seller/owner will be responsible for and liable to Brown’s Auction Company for any damages outlined in this Consignment Agreement.

(f)     Seller will be charged ten (10%) percent on all items sold, EXCEPT AND UNLESS any and all “items” fall into the category that applies to the subsequent provisions of this Consignment agreement.

(g)   Considering the foregoing provisions, if, and only if, said auction “item(s)” has a reserve and/or said “item” is auctioned off, with sellers consent, at a price of $500.00 or less, Seller will be charged a twenty (20%) percent broker’s fee on said item(s).

(h)   Under no circumstances, and not under any event, shall Brown’s Auction Company be liable, responsible, and/or obligated to pay the seller or buyer, for any and all damages incurred from the unloading, loading, storage, and/or transfer of said “item.”

(5)   Damages. Shall the undersigned owner subject to this Consignment Agreement breach any provision thereof, owner shall be liable to Brown’s Auction Company in an amount no less than $25.00, but in no case to exceed $5,000.00, which is a flat penalty for any and all fees, costs, and expenses incurred by Brown’s Auction Company for any advertising, storage, maintenance, and/or labor expended upon said equipment.

(6)   Severability Clause. Shall any provision or provisions of this agreement are illegal, immoral, or contrary to law, then that provision shall be severed from this agreement and any and all other provision(s) of this agreement shall have the full force and effect of law over both parties subject to this Agreement.

(7)   Agent/Mandatory Provision. For the purposes of this specific transaction, Seller hereby agrees, consents, and voluntarily gives Brown’s Auction Company the specific, actual, implied, and/or apparent authority to sign as mandatory and/or agent on behalf of Seller to bind the authorized transaction that is the subject of this auction and consignment agreement. Sellers initials: ________.

(8)   No Reserve Auction.  This is a no reserve auction.  Auctioneer agrees to use its best efforts to obtain the highest available bid for said property at the auction sale, however, if you should choose to come and ‘protect’ your property by submitting a bid in an amount higher than or equal to that amount that you would have put as the reserve, Seller will not be charged the ten (10) percent seller’s fee. Furthermore it is expressly agreed and understood, the Auctioneer does not guarantee performance by the high bidder and, therefore, shall not be responsible if, for any reason, the high bidder should fail to perform and complete the transaction pursuant to the purchase agreement thereafter executed.