Terms for Consignment at Redline Restorations
Please carefully read the following terms:
Section 1A: Owner ("Owner") owns the vehicle ("Vehicle") that the application is being filled out for.
Section 2A: Vehicle Owner shall pay a standard 13% fee ("Fee") of the gross sale price ("Price") of the vehicle for Redline's services. The Owner shall pay the Fee upon receipt of the monies from the buyer of the Vehicle. Redline shall have no obligation to pay any fees, taxes, or other charges in connection with the sale (collectively "Transfer Costs"). Except for those Transfer Costs that are the responsibility of the buyer, Owner shall pay all other Transfer Costs. Transfer Costs are defined as any taxes owed to any governmental authority for failure to properly transfer the title into the Owner's name when the Owner purchased the car.
Section 3A: The term of the consignment sale shall be 90 days from the date that Redline receives the Vehicle from the Owner (the "Term"). Any extension of the term shall be in writing.
Section 4A: Redline will not sell the Vehicle for less than the minimum price set by the Owner, without the prior written consent of Owner. "Written" shall include photocopy, e-mail, or facsimile.
Section 5A: The Fee does not include any repairs or other work (collectively "Work") done on the Vehicle that is not included in Redline's responsibilities as defined in Section 2A. All work, authorized by owner and completed by Redline will be billed to Owner at the then hourly rate quoted by Redline to its normal customers. Owner will pay for the cost of all parts.
Section 6A: Owner agrees that Redline may keep 2% of the Price ("Reserve") following the sale of the Vehicle for 60 days from the transfer of title as a reserve for any claims of undisclosed defects by the buyer in connection with the Vehicle. Redline shall provide Owner reasonable details of the use of the Reserve and shall promptly pay Owner the balance remaining after the 60 day period.
Section 7A: If Redline terminates the Agreement because Owner's breach of the Agreement or pursuant to the sections above for consignment terms, Owner shall immediately reimburse Redline for its direct expenses under this Agreement.
Section 8A: If the sale of the Vehicle by Redline does not close because Owner failed to provide clear title to the Vehicle, free of all liens and defects, in a timely manner, Owner shall immediately pay the Fee to Redline as if the sale had closed.
Terms for the Vehicle Owner:
Section 1B: Owner authorizes Redline to sell the Vehicle on Owner's behalf, including the power to execute any necessary documentation as Owner's agent.
Section 2B: Owner will promptly provide all documentation needed by Redline to sell the Vehicle, including title to Vehicle, free from all liens and defects. Owner will comply with all laws applicable to the sale of Vehicle.
Section 3B: Owner warrants and represents to Redline that (a) Owner owns the Vehicle, (b) there are no liens on or security interests in the Vehicle, (c) Owner has full right and authority to enter into this Agreement for and to sell the Vehicle, and (d) any information regarding the Vehicle that Owner provides Redline will be true and accurate to the best of the Owner's knowledge.
Section 4B: During the term of the Agreement for Consignment, during any period when the Vehicle is being transported by Redline and so long as the Vehicle is on Redline's premises, Owner will maintain full liability coverage, and in addition, comprehensive fire, theft, collision, and such other insurance on the Vehicle for its full replacement value as Redline reasonably requires. The limits of the insurance shall be reasonably satisfactory to Redline. A condition to Redline's obligations under this Agreement is receipt by Redline of a certificate of insurance evidencing Owner's compliance with this Paragraph.
Section 5B: Owner acknowledges that Redline will not allow test drives of the Vehicle unless Owner gives his or her express permission.
Section 6B: Owner shall indemnify and hold Redline harmless from and against all actions or causes of action, claims, demands, liabilities, losses, damages or expenses which Redline may sustain or incur as a result of a breach by Owner of this Agreement, including any suit instituted to enforce the obligations of this Agreement.
Section 7B: If the Vehicle is not sold by Redline for any reason, Owner shall pay the cost of transporting the Vehicle to Owner.
Terms For Redline:
Section 1C: Redline will: (a) detail the Vehicle, (b) perform a routine safety check on the Vehicle, (c) provide Owner with a report of any items that Redline suggests should be repaired for the Vehicle to be in saleable condition. (d) conduct a professional photo shoot of the vehicle, (e) prepare a description of the condition of the Vehicle, (f) display the vehicle in Redline's showroom as Redline deems appropriate, (g) list the Vehicle on Redline's website and other internet sites as Redline deems appropriate, and (h) use reasonable efforts in marketing and selling the Vehicle (collectively "Redline's Responsibilities").
Section 2C: In the event Owner does not authorize Redline to perform any work that Redline reasonably suggests as a result of Redline's safety check of the vehicle or otherwise to put the vehicle in saleable condition, Redline shall have the right to terminate this Agreement.
Section 3C: Redline will promptly pay Owner the Price minus the sum of the Fee, the Reserve, the Transfer Costs, and any amounts owed but unpaid by Owner to Redline under this Agreement.