Interactive Guide to Gallery Consignment Agreements
A consignment agreement is a key contract between an artist and a gallery. This guide breaks down the 13 most important terms you need to know, based on the provided report. Click any term to see its explanation.
1. Parties
This section identifies the legal names and contact information of the two parties involved:
- Artist (Consignor): The person who created the work and is consigning it.
- Gallery (Consignee): The business that will display and sell the work.
2. Scope of Consignment (The "Works")
This is a critical section that defines exactly which artworks are covered by the agreement. It should be as specific as possible.
- Inventory List: This is often an attached document (sometimes called a "Schedule A" or "Inventory Sheet") that lists each individual artwork.
- Details: For each piece, it should include:
- Title
- Medium (e.g., "Oil on canvas")
- Dimensions
- Creation Date
- Retail Price (agreed upon by both parties)
3. Term (Duration)
This clause defines the length of time the agreement is in effect.
- Initial Term: How long the gallery has to sell the work (e.g., 6 months, 12 months).
- Renewal: Specifies if the contract automatically renews or if it requires a new agreement.
- Exclusivity Period: The term may also define a period of exclusivity (see below).
4. Pricing & Commission (The "Split")
This is one of the most important sections, as it details how everyone gets paid.
- Retail Price: The final price the artwork will be sold for to a customer. The agreement should state whether this price is set by the artist, by the gallery, or by mutual agreement.
- Commission: The percentage of the retail price the gallery keeps as its fee. This is often 50%, but can range from 40% (Artist) / 60% (Gallery) to 60% (Artist) / 40% (Gallery).
- Discounts: The agreement should state whether the gallery is allowed to offer discounts on the artwork, and up to what percentage (e.g., "Gallery may offer a discount of no more than 10%").
5. Payment Terms
This section defines when and how the artist gets paid *after* a sale.
- Timing: A common term is for the gallery to pay the artist their share within 30 days of receiving full payment from the buyer.
- Reporting: The gallery may be required to provide the artist with a written "Consignment Sales Report" at regular intervals (e.g., monthly or quarterly), listing all sales and payments due.
6. Insurance & Liability
This term outlines who is responsible if the artwork is damaged, stolen, or destroyed while in the gallery's possession.
- "Wall-to-Wall" Insurance: Most professional galleries are required to carry insurance that covers the artwork from the moment it enters their possession until it is sold or returned to the artist.
- Valuation: The agreement should state the "insured value" of the work, which is typically the artist's share (the retail price minus the gallery's commission).
7. Shipping & Transportation
This clause clarifies who is responsible for the costs and logistics of moving the art.
- To the Gallery: The artist is often responsible for the cost of shipping the work *to* the gallery.
- From the Gallery: The gallery is often responsible for the cost of returning unsold work *from* the gallery to the artist. This is highly negotiable.
8. Title & Ownership
This is a crucial legal point.
- Artist Retains Title: The agreement must clearly state that the artist remains the legal owner (retains title) of the artwork *until* it is sold to a third-party buyer.
- Protection from Creditors: This clause protects the artist. If the gallery goes bankrupt, this term helps ensure the artist's work is returned and not seized by the gallery's creditors.
9. Right to Return (Unsold Work)
This section explains what happens to any art that doesn't sell by the end of the "Term."
- Return Process: The gallery agrees to return all unsold works to the artist within a specified period (e.g., 30 days after the agreement ends).
- Return Shipping: As mentioned above, this clarifies who pays for the return.
10. Gallery's Responsibilities
This outlines the gallery's obligations in exchange for its commission.
- Promotion: The gallery agrees to use its best efforts to promote the artist and sell the work (e.g., inclusion in shows, website listings, social media).
- Display: The gallery agrees to display the work in a professional manner.
- Care: The gallery agrees to protect the work from damage or loss.
11. Artist's Warranties & Responsibilities
This outlines the artist's promises.
- Originality: The artist must warrant (promise) that the work is original, that they created it, and that it doesn't infringe on anyone else's copyright.
- Delivery: The artist agrees to deliver the work in a condition that is ready for display (e.g., framed, with hanging wire).
12. Exclusivity
This term can vary widely and is very important to understand.
- Exclusive: The gallery may require that it is the *only* entity allowed to sell the specific consigned artworks during the term.
- Non-Exclusive: The artist is free to sell the work through other channels.
- Geographic Exclusivity: The artist may agree not to consign work to another gallery within a certain radius (e.g., "within 50 miles").
13. Termination
This clause explains how either party can end the agreement early.
- Written Notice: Typically, either party can terminate the agreement for any reason with a set amount of written notice (e.g., 30 or 60 days).
- For Cause: The agreement may be terminated immediately if one party breaches the contract (e.g., the gallery fails to pay the artist).