If you`re an artist looking to sell your work, getting involved with a gallery is a great way to showcase your creations and earn some money from sales. But before you jump into a partnership with a gallery, it`s important to understand the terms of a consignment agreement.
A consignment agreement is a legal document that outlines the relationship and responsibilities between an artist and a gallery. In this case, the artist consigns their work to the gallery, meaning the gallery will display and attempt to sell the artwork on their behalf. Once a piece is sold, the gallery will take a commission from the sale price and pay the artist the remaining balance.
When entering into a consignment agreement, it`s important to understand the details of the arrangement. Here are some key terms to look out for:
Commission rate: This is the percentage of the sales price that the gallery takes as their commission. It`s typical for galleries to take anywhere from 30-50% of the sale price, so make sure you`re comfortable with the percentage before signing the agreement.
Delivery and storage: The agreement should specify who is responsible for delivering the artwork to the gallery, as well as how it will be stored while in the gallery`s possession.
Duration of consignment: The agreement should specify how long the artwork will be on consignment with the gallery. This could be a set amount of time, or until the artwork is sold.
Pricing and discounts: The agreement should indicate who sets the sale price for the artwork, as well as if the gallery has the authority to offer discounts on the artist`s behalf.
Insurance: It`s important to ensure that the artwork is insured while in the gallery`s possession. The agreement should specify who is responsible for obtaining and paying for this insurance.
In addition to these terms, it`s important to have a clear understanding of the payment process. Make sure the agreement specifies when and how payments will be made to the artist, and what documentation will be provided to support the payments.
In summary, a consignment agreement is an important document to ensure that both the artist and gallery are on the same page when it comes to the display and sale of artwork. Make sure to carefully review and understand the terms of the agreement before signing on the dotted line.