Auction Services Terms and Conditions
The following Auction Services Terms and Conditions (the Agreement) shall apply to all sales. By consenting, you agree to the below Terms and Conditions unless otherwise agreed to in writing.
1. Definitions
1.1 Mazad: shall refer to Mazad B.S.C which organizaess the auction for the purpose of selling the sellers assets to the highest bidder
1.2 Seller: shall refer to the owner and seller of the Assets which are auctioned through Mazad’s plateform
1.3 Asset or Assets: shall refer to the item or items auctioned through Mazad’s platform at the Seller’s request
1.4 Sale Assignment Letter: the document to be completed by the Seller for each Asset to be auctioned through Mazad’s platform
1.5 Lot: shall refer to the auction identification of the Asset assigned by Mazad
1.6 Faulty Products: shall refer to an Asset confirmed to be in a state which is slightly or completely different or defective from the state in which it was presented to be by the Seller prior to the auction.
2. Content and Images
2.1 The Seller confirms that all images of products on Mazad’s platform are for illustrative purposes only. Mazad makes no guarantees or warrants that displayed items will be identical to depicted images.
2.2 The Seller shall not advertise nor offer for reliance, to bidders or potential bidders, on images when placing a bid, and shall ensure that bidders and potential bidders review full product details/description, and conduct their own due diligence.
2.3 The Seller shall fully indemnify and release Mazad from any liability pertaining to displayed and/or purchased Assets by Third Parties in the event of any variation from the product image to the delivered item.
2.4 The Seller hereby undertakes to expressly identify in writing prior to placement for bids any Assets that require additional accessories which are sold separately, unless expressly stated otherwise.
3. Information accuracy and availability of Products
3.1 The Seller shall be fully responsible for Assets displayed on the Mazad platform, including but not limited to any Asset descriptions provided by the Seller. In the event of any misrepresentation in the provided Asset information or description, Mazad reserves the right at its sole discretion and without prior notice to cancel or suspend the auction till further notice, without any liability or responsibility on Mazad.
3.2 All information related to the Seller’s Assets contained on Mazad’s platform have been prepared solely for the purpose of providing general information about the Assets and (where relevant) services that are provided.
3.3 All information and materials published by Mazad are provided in good faith as a convenience to the bidder and may be used for information purposes only and at all times in accordance with this Agremeent.
4. Payment Terms
4.1 Mazad shall be entitled to a lisiting fee as provided as per the Assignment of Sale Letter.
4.2 Mazad shall be entitled to a commission as provided as per the Assignment of Sale Letter of the gross proceeds exclusive of VAT generated from each successful auction conducted through Mazad’s platform. VAT, shall be payable in accordance with the applicable laws and regulations of the Kingdom of Bahrain. The Seller agrees and undertakes to settle any additional charges endured by Mazad for the purpose of this Agreement, which may include but are not limited to bank charges.
4.3 In the event of a cancellation or termination of an auction for any reason whatsoever due to the direct or indirect acts or omissions of the Seller, Mazad shall be entitled to the commission as outlined in clause 4.2 of this Agreement.
4.4 Mazad shall remit payment of the proceeds to the Seller within 30 working days from the date of receipt of the auction proceeds following deduction of any commission or other amounts owed to Mazad from the conducted proceeds and in any case after the transfer of ownership of the Asset to the buyer.
4.5 Mazad shall be entitled, at its sole discretion and without prior notice, to deduct, set off, or withhold from any amounts payable to the Seller any sums that the Seller owed to Mazad. Such amounts may include, but shall not be limited to, commissions, fees, advances, expenses, storage charges, insurance costs, taxes, or any other amount due under this Agreement.
4.6 Mazad’s right to set-off outlined in clause 4.5 provided herein shall apply regardless of whether the amounts owed arise in connection with the same Lot or any other Lot. Mazad shall be entitled, in its sole discretion, to deduct any owed amount from the proceeds of sale of any Lot, whether sold in the same auction or in any other sale conducted by Mazad.
4.7 The Seller acknowledges and agrees that Mazad may retain and apply sale proceeds from any Lot towards the satisfaction of any outstanding indebtedness owed by the Seller to Mazad.
5. Limitation of Liability
5.1 The Seller shall bear full responsibility and liability for the Assets listed for auction through Mazad’s platform. The Seller shall indemnify, defend, and hold harmless Mazad, its affiliates, and their respective officers, employees, and agents against any and all claims, damages, losses, liabilities, costs, or expenses (including reasonable legal fees) arising from or relating directly or indirectly to the Asset sold through Mazad, the legality of their resale, or any claims brought by third parties in connection with the Assets.
5.2 Mazad’s aggregate liability, if any, under this Agreement shall be strictly limited to the amount of fees actually received by Mazad in connection with the specific auction giving rise to the claim.
5.3 Mazad shall not, under any circumstances, be liable for any indirect, incidental, consequential, punitive, exemplary, aggravated, or special damages, including but not limited to loss of profits, loss of revenue, loss of business, loss of opportunity, loss of anticipated savings, loss of contracts, loss of goodwill, loss of data, business interruption, reputational harm, or any similar or analogous losses, whether foreseeable or unforeseeable, and whether arising in contract, tort (including negligence), breach of statutory duty, or otherwise, in connection with or arising out of the sale of the assets through its platform.
6. Indemnification
6.1 The Seller shall fully indemnify, defend, and hold harmless Mazad, its affiliates, and their respective directors, officers, employees, and agents against any and all actual, potential or alleged claims, demands, damages, penalties, fines, actions, proceedings, liabilities, judgments, losses, and expenses (including reasonable legal and professional fees) arising out of or relating to:
- (a) the contents, condition, or legality of the Assets;
- (b) misrepresentation, incorrect description, or omission regarding the Assets;
- (c) breach of any law, regulation, or third-party rights (including intellectual property, customs, or consumer protection laws);
- (d) injury to persons or damage to property caused by the Assets; and/ or
- (e) any claims brought by buyers, regulatory authorities, or other third parties in connection with the Assets.
7. Mazad Obligations
7.1 Mazad shall have the exclusive right to determine the manner, format, and timing of all auctions conducted through its platform.
7.2 Mazad shall have the right to approve or reject any Assets proposed for auction if, in its sole discretion, such goods are deemed unsuitable, unlawful, or non-compliant with Mazad’s policies.
7.3 Mazad shall retain all intellectual property rights in its platform, software, processes, trademarks, and any related documentation. The Seller shall acquire no rights other than those expressly granted under this Agreement.
7.4 Mazad shall have the right to anonymize the identity of the Seller when conducting auctions and marketing the Assets to potential bidders.
7.5 Mazad shall use reasonable efforts to promote auctions and attract potential bidders.
7.6 Mazad shall not be liable if the successful bidder fails to pay the bid amount, as Mazad does not guarantee the success of the auction.
7.7 Mazad shall implement the decisions issued by the Seller following mutual agreement between the Parties regarding the offering of Assets, as determined in writing by the Seller, for sale through public auctions (either electronic or physical).
7.8 Mazad shall not make any improvements to, or incur expenses related to, the Assets without the prior written approval of the Seller.
7.9 Mazad shall coordinate with the Seller to determine the announcement date for each auction on a case-by-case basis.
7.10 Mazad shall use reasonable efforts to sell the Assets through public auctions at the highest possible price. If a sale cannot be completed for any reason, Mazad reserves the right to terminate the auction without any liability or responsibility. Mazad shall not be responsible for the outcome of the auction, nor for any failure by the winning bidder to pay the purchase price, and does not guarantee the success of the auction process.
8. Seller Obligations
8.1 The Seller warrants that it owns the title to the Asset, or lawful authority to sell them, and that such sale does not violate any law or third-party rights.
8.2 The Seller shall promptly provide Mazad with all relevant information, documents, and materials (“Data”) necessary for the Sale, as determined and/ required by Mazad. The Seller warrants the accuracy of such Data and undertakes to provide it without delay. The Seller shall bear sole responsibility for any delay resulting from its failure to deliver the Data within the agreed timeframe.
8.3 The Seller shall provide all necessary information regarding the Assets (including quantity, type, and condition) to enable Mazad to conduct auctions effectively.
8.4 The Seller shall ensure timely delivery or release of Assets to successful bidders, in accordance with Mazad’s request and requirements.
8.5 The Seller shall ensure that all goods offered for sale are lawful for resale, not prohibited, counterfeit, subject to any legal claims or proceedings, or stolen and are free of any encumbrance, dispute or legal, financial or other obligations, unless disclosed otherwise by the Seller.
8.6 The Seller shall provide Mazad with all Data related to the sale of the Assets and warrants that the Data provided (including specifications, images and market value amounts) are correct and accurate.
8.7 The Seller confirms that the Assets are authentic and genuine, and do not infringe on the intellectual property rights of any third party.
8.8 The Seller shall promptly notify Mazad of any event or circumstance that may reasonably be expected to suspend, modify, obstruct, or otherwise affect Mazad’s performance under this Agreement. Mazad shall bear no responsibility for any delay caused by the Seller’s failure to provide such timely notification.
8.9 The Seller shall immediately provide Mazad with a written Sale Assignment Letter, supported by all necessary data and decisions related to each assignment, including but not limited to Asset data, proposed sale terms, and other relevant information. The Seller shall ensure that all Sale Assignment Letters and related decisions comply with applicable legal requirements.
8.10 The Seller shall prepare proposed sale terms for each Asset and submit them to Mazad for discussion at least fourteen (14) Working Days prior to the auction announcement, or within another period agreed in writing by the Parties. The final sale terms shall be agreed upon by both Parties.
8.11 The Seller shall ensure that the Assets meet all legal and regulatory requirements for sale under the applicable laws, regulations, and rules of the Kingdom of Bahrain.
9. Bidding Procedure
9.1 In accordance with this Agreement and the applicable laws and regulations of the Kingdom of Bahrain, Mazad shall, when assigned to conduct a sale, follow the procedures below unless otherwise provided in the Sale Assignment Letter.
9.2 Upon receiving the Sale Assignment Letter and supporting data, Mazad shall visit the Asset location, inspect the Assets, and verify their details.
9.3 Mazad shall offer the Assets for public auction by the means agreed between the Parties, as specified in the Sale Assignment Letter.
9.4 Mazad shall permit eligible bidders, as jointly determined by the Parties, to access the electronic auction platform, register, and electronically accept the sale terms. Such acceptance shall be deemed a valid signature.
9.5 Mazad shall verify the identity and legal capacity of all bidders to ensure their eligibility under applicable laws of the Kingdom of Bahrain.
9.6 Upon a successful sale, Mazad shall collect the sale proceeds and transfer them to the Seller within thirty (30) days of receipt from the winning bidder, after deducting its fees and any other expenses.
9.7 In the event where the winning bidder fails to pay the sale price within thirty (30) days or breaches any sale condition, the deposit fee shall be forfeited to Mazad’s benefit, and the matter referred to the Seller to decide whether to relist the Asset or award it to another bidder.
9.8 Upon full payment, the Seller shall transfer ownership of the Assets to the winning bidder.
9.9 Once ownership transfer is completed, Mazad shall notify the winning bidder to collect and remove the Assets and/ or complete registration with the relevant governmental authority.
9.10 Upon completion of the sale, Mazad shall provide the Seller with a summary of the procedures, outcome, and winning bidder details.
9.11 If re-auctioning is required, the Seller shall issue Mazad an official written request with supporting data and decisions. Neither Party shall bear additional costs or losses unless the re-auction is caused by its fault.
9.12 The minimum opening bid and reserve price of each Asset shall be decided upon by the Parties and defined under the Sale Assignment Letter
9.13 If the sale is completed, Mazad shall collect and transfer the bid amount of the sold Assets to the Seller in a period not exceeding 30 business days from its receipt of such amounts, after deducting fees due to Mazad and other amounts or expenses owed to Mazad.
9.14 Following the successful bidder’s payment of the bid amount in full, the Seller shall immediately transfer ownership of the Assets to the successful bidder, following the Seller’s receipt of the bid amount from Mazad.
9.15 The Seller may request Mazad to reauction the Assets after providing Mazad with all necessary supporting Data.
9.16 Mazad shall not incur any additional expenses or be liable for any losses, unless the Asset has been reauctioned as a result of Mazad’s willful negligence.
9.17 Mazad shall be released before the Seller and any third party from any liability if it has executed the instructions of the Seller correctly.
9.18 The Seller appoints Mazad exclusively to sell the Assets.
10. Faulty Goods
10.1 Buyer must notify Mazad within 7 calender days of receipt of Asset(s) suffering from any fault.
10.2 Mazad may request the Seller to attend testing and fault investigations in the event of a buyer complaining of faulty goods following successful bids or purchases. Mazad may, in its sole discretion, deem such item(s) as ‘Faulty Products’.
10.3 Mazad may, in its sole discretion, cancel a bid and issue a refund for Assets it deems as Faulty Products. In such event of a refund due to Faulty Products, the Seller shall remain fully and completely liable for any commission that would have been owed to Mazad in the event of a successful bid. In the event where the bid amount pertaining to a Faulty Product has already been transferred to the Seller, Mazad shall issue an instruction to the Seller, and the Seller shall within no more than 7 days, refund the amount to the successful bidder in line with Mazad’s instructions. The Seller shall remain fully and completely liable towards the successful bidder, and shall indemnify and hold Mazad harmless against all legal action initiated against Mazad, until full and complete refund to the successful bidder.
11. Assignment
The Seller shall not assign, transfer or otherwise deal with all or any of its benefits, rights or obligations under this Agreement without Mazad’s prior written consent.
12. Severance
If any provision of this Agreement is or becomes illegal, invalid or unenforceable in any respect under the law and regulation of the Kingdom of Bahrain, that shall not affect or impair the legality, validity or enforceability of any other provision of this Agreement.. If any illegal, invalid or unenforceable provision of this Agreement would be legal, valid and enforceable if some part or parts of it were modified, such provision shall apply with whatever modification is necessary so that it is legal, valid and enforceable and gives effect to the commercial intention of the Parties.
13. Waiver
No right or remedy under or in respect of this Agreement shall be precluded, waived or impaired by (a) any failure to exercise or delay in exercising it; (b) any single or partial exercise of it; (c) any earlier waiver of it, whether in whole or in part; or (d) any failure to exercise, delay in exercising, single or partial exercise of or earlier waiver of any other such right or remedy.
14. General
14.1 If this Agreement is translated into any language other than English, the English language text shall prevail.
14.2 Communicated time frames are estimates, and shall not in any way shape or form bind Mazad.
14.3 Words importing the singular include the plural and vice versa and a gender includes every other gender.
14.4 Headings are inserted for guidance only and do not affect the interpretation of these terms and conditions.
14.5 Mazad shall in no way be liable nor responsible for storage, delivery, maintenance or upkeep of the Assets, and as such Mazad is not responsible for any delay in delivery, Asset storage or any other matter arising out of or related to the Assets.
14.6 Mazad is neither responsible for, nor does it endorse, the content of any product or Asset review or statement posted. Any statements posted constitute the statements of the Seller and are not the statements of Mazad. Mazad makes no representations as to the appropriateness, accuracy, completeness, correctness, suitability, or validity of any product review or statements posted.
15. Marketing
15.1 Mazad may send the Seller information about the products and services offered which may interest the Seller.
15.2 The Seller may opt out of receiving such marketing material at any time. If the Seller no longer wishes to be contacted for marketing purposes, the Seller shall inform Mazad through any of the designated communication channels specified on Mazad’s platform.
16. Privacy Policy
16.1 All content submitted by the Seller may be used at Mazad’s sole discretion. Mazad reserves the right to change, condense or delete any content on Mazad’s platform, including content that Mazad deems, in its sole discretion, to violate the content guidelines or any other provision of this Agreement, and/ or Mazad’s terms of use or any other internal policy. Mazad does not guarantee that the Seller will have any recourse through Mazad to edit or delete any content the Seller has submitted.
16.2 The Seller acknowledges that Mazad is not responsible, and that the Seller is solely responsible for the contents of any submission. None of the content that the Seller submits shall be subject to any obligation of confidence on the part of Mazad, its agents, subsidiaries, affiliates, partners or third party service providers and their respective directors, officers and employees.
16.3 By submitting the Seller’s email address in connection with rating and review, the Seller agrees that Mazad and its third party service providers may use the email address to contact the Seller about the status and/or subject of the review and for any other purposes, including marketing purposes.
17. Confidentiality
17.1 This Agreement shall be deemed as confidential information. Any information concerning the Agreement obtained by either Party or their representatives, directors, officers or employees (including its subcontractors) in connection with the Agreement is confidential and shall not be used, disclosed, copied, reproduced or distributed except with the prior written approval of the other Party. Both Parties hereby undertake to take all reasonable steps to protect such confidential information, and to protect such confidential information against unauthorised access or disclosure to a standard no less than that applied to the protection of their own confidential information. Each Party will enforce equivalent confidentiality requirements on all of its employees, agents, suppliers and subcontractors associated with this Agreement.
17.2 All confidential information disclosed under this Agreement shall be and remain the property of the disclosing Party and nothing contained in this Agreement shall be construed as granting or conferring any rights to such confidential information on the other Party.
17.3 The confidentiality obligations on the Parties under this Agreement shall survive the expiry or termination of this Agreement.
18. Reserve Price and Commission Entitlement
18.1 In the event where, after the close of bidding, the highest bid meets the reserve price stated in the Assignment of Sale Letter and the Seller refuses to proceed with the sale, the Seller shall remain liable to pay Mazad the agreed commission in full, as though the sale had been completed.
19. Force Majeure
19.1 Neither Party to this Agreement shall in any circumstances be liable to the other for any delay or non-performance of its obligations under this Agreement to the extent that such delay or non-performance is due to an event that is beyond its control. This includes, but is not limited to, civil unrest, natural disasters, casualties or accidents, war, or actions or decrees of governmental bodies (“Force Majeure Event”).
19.2 In the event that a Party is substantially prevented by a Force Majeure Event to perform its obligations under this Agreement, it shall serve the other Party notice in writing of such delay or prevention as soon as reasonably practicable, stating the extent of such delay or prevention, and it’s estimated duration.
19.3 The Party affected by the Force Majeure Event shall use all reasonable endeavors to mitigate the effects of such delay or prevention on the performance of its obligations under this Agreement.
19.4 Should the effect of the Force Majeure Event continue for more than 90 days, either Party shall have the right to terminate this Agreement without any indemnity or compensation to the other Party.
20. Governing Law and Jurisdiction
20.1 This Agreement and any non-contractual obligations arising out of or in connection with it are governed by and shall be construed in accordance with the laws of Bahrain.
20.2 Any dispute, difference or claim arising out of or in connection with this Agreement, including without limitation any question regarding its existence, validity, breach or termination, shall be referred to and finally resolved by the courts of Kingdom of Bahrain