Research On Defect Guarantee Theory In Art Auction

Auction, as a special way of selling things, has set its foot on numerous countries many years’ago and developed its own set of rules. These rules effectively balance the relationship among auctioneer, client and vendee. China started its auction business in the recent20years and has made impressive achievement. However, China Auction Law leads to improper distribution of right and responsibility of all parties in auction. Besides, auctioneers and clients are likely to take advantage of their status and make illegal behaviors.In other words, even though the vendee has suffered big losses, he can claim compensation from the auctioneer in limited circumstances. Such practice leads to constant controversies. People hold that it is in violation of the principle of justice. Especially in art auction, authenticity is what buyers care most. Once a famous painting is identified as fake, it loses majority of its value. Compared with other forms of auction, such defect of an object produces much more influence on the art buyer. Therefore, vendee protection concerning the defect of an object is of great urgency and great importance.In order to protect the rights of innocent buyers, we have to do research on "defect guarantee theory" and try to understand its use in China Auction Law. Only based on this, can we find the ways to safeguard the rights of the vendee. At the same time, we have to study on "relief matters of defect guarantee duty", for these matters are considered as restrictions on buyers’rights. China Auction Law accepts the existence of such "relief matters" and moreover it provides that "where an auctioneer and client declare, prior to the auction sale, that they cannot guarantee the genuineness or quality of an object, they shall not be liable for the guaranty of the object." Such declare makes significant impact on the vendee. For the sake of buyers, the author offers two solutions:one is to introduce "unconscionability provision" in the China Contract Law, the other is to amend the law.The thesis contains five parts. The first part cites a case to catch readers’ attention about the topic. The second part gives an introduction of current art market which is full of fake works and talks about the dilemma of the vendee. The third part is divided into three sections:section one is to prove the necessity and importance of vendee protection; section two is about the study on "defect guarantee theory"and its application in art auction; section three is an analysis on the "defect warranty disclaimer provision" that eliminate auctioneer and client’s duty of guaranteeing the object. In accordance with the legal question on how to protect buyers’ rights, the fourth part brings forward some suggestions.The fifth part is a conclusion, briefly summarizing all the arguments of this thesis.