The difference between auction and discount

The difference between auction, sale and discount: auction means that the price of sealed-up or mortgaged property must be evaluated through legal procedures, and a qualified auction house will announce the auction in the auction market, sign a sales contract with the highest bidder, and transfer specific goods or property rights to the highest bidder. Selling is different from an unannounced auction, which is a sales activity in which a third party has the right to sell collateral to one or more specific buyers. Discounting takes place between the creditor and the debtor, and the creditor and the debtor negotiate the value of the collateral themselves to offset the creditor's rights and debts. From the concept of discount, we can see that discount is mainly an act of autonomy between creditors and debtors, and there is no strict procedure and openness, and there is no open bidding transaction procedure. The operation is relatively simple, and it is easy to distinguish between sale and auction. Compared with auction, selling is a commercial act of selling property, but there are considerable differences in the procedures, methods and scope of selling. This difference is reflected in civil litigation. Auction and sale can both be used as a civil enforcement measure against the debtor's property that fails to perform due debts in the execution stage of civil litigation. However, the openness, competition and legal procedures of auction make the auction procedure significantly different from the sale procedure, which makes the auction and sale strictly different.

legal ground

Provisions of the Supreme People's Court on Auction and Sale of Civil Execution Property by People's Courts Article 4 The people's court shall entrust an appraisal institution with corresponding qualifications to evaluate the price of the auction property. If the value of the property is low or it is easy to determine the price according to the usual method, the evaluation can be omitted.

The people's court shall allow the parties and other enforcement creditors to apply for non-evaluation.

When evaluating the equity of the person subjected to execution, the people's court may order the relevant enterprises to provide accounting statements and other materials; If the relevant enterprise refuses to provide it, it can be forcibly extracted.