Meanwhile, if a third party guarantees a work and it sells to a different bidder, the guarantor may get a share of the upside.
Moore's bill would allow a company like Caterpillar to trade derivatives with its offshore affiliates -- firms that it owns in other countries -- without posting money to a third party guaranteeing that it can make the trade.
Auction houses cleaned up their act after a price-fixing scandal in the 1990s but some still engage in questionable practices, such as "irrevocable" bids, whereby third parties guarantee a sale price and take a cut if it is exceeded, but do not have to disclose if they themselves bid the price up.Given the opacity of the business, allegations of shenanigans can be hard to verify.
Brant had not surrendered out of the goodness of his heart: Gouzer had secured for him a third-party guarantee.
Just as with a regular guarantee, with a third-party guarantee consignors receive an assured payment regardless of a work's fate at auction.
Since then, the houses have pioneered the so-called "third-party guarantee", a little-understood but critically important shift in art finance.
However, with the exception of the Picasso, this was an ordinary third-party guarantee in which the auction house and the third party jointly shoulder the guarantee according to proportions contractually stipulated but not publicly released.
Like the $106.5-million Picasso, "Grande tête mince" (Big Thin Head), as catalogs call the model, had induced Christie's bosses, presumably scared by their bold $25- to $35-million 35-millionto nestimate a full toird-party guaranegotiate
The auction houses are also helping to boost the market and reduce volatility through a nifty trick called a "third-party guarantee" or "irrevocable bid", through which they sell a work before the auction for a minimum price.
