Many visual artists showcase and sell their works through galleries. Collaborating with a gallery usually involves a .
A means that you, the artist, entrust your artwork to a gallery or an art dealer for the purpose of sale. The consignment defines the scope of authority you grant your representative—the gallery or art dealer—to promote and sell your artwork on your behalf.
In a consignment relationship, you retain the (title) of your physical artwork until the work is sold. When your work is sold, the ownership transfers to the buyer.
The sale of your artwork does not, however, automatically transfer : copyright usually remains with you, the artist, unless it is separately transferred or licensed in writing.
Also when your work is sold, your representative receives their cut of the sale price as commission. The commission rate varies depending on factors such as the gallery’s reputation, the services provided (for example, marketing, art fairs, storage, or installation), and the artist’s market position. It is typically negotiable and should be clearly specified in the agreement.
If the artwork does not sell within the agreed period of the consignment, it is typically returned to you. If the parties wish to extend this period instead, that is usually agreed in writing too.
A may be a one-off, covering a specific exhibition or artwork, or part of a longer term representation arrangement if the gallery regularly represents your work.
A can include many terms; we explore some of the most common ones below.
Inventory of Artwork
A consignment agreement usually lists exactly which pieces are being consigned. For each piece, it would include, for example, the title, description, dimensions, and your stated inventory price (the price at which it should be sold—or at least the minimum price you would agree to sell it for.) It may also include the number of pieces or any limits (e.g., the gallery might not want you to send the same works to another gallery concurrently in the same city).
Pricing
While you usually set a retail price with the gallery, the contract often clarifies who has authority to adjust the price or offer discounts. Galleries are often given the discretion to offer a small discount up to an agreed limit, to close a deal, but beyond that they would need to seek your approval. This helps ensure, for example, your USD 1,000 painting does not get sold for USD 500 without your knowledge.
The will also specify a commission rate. In some established art markets, a 50/50 split between commercial galleries and artists is a common reference point. However, commission rates are negotiated and may vary depending on the artist’s career stage and bargaining power, as well as the services and financial support provided by the gallery.
Payment
The consignment contract typically states when you get paid after a sale. For example, the gallery may undertake to pay you within a set period, such as 30 days, after receiving full payment from the buyer. The agreement may also require the gallery to provide a written accounting of the sale, including the sale date, price, buyer name (unless it is confidential), and the artist’s share. And, if a work is sold on an installment plan to a collector (which often happens for more expensive pieces), the agreement often also clarifies how this is handled. For example, do you receive your percentage as the gallery gets paid, or only after full payment? A common approach is that each time the gallery gets a partial payment, the artist is paid their proportion of that payment.
Exclusivity
Many consignment contracts give a gallery or an independent art dealer exclusive rights to sell your art in a certain territory for a defined period. This means that you cannot engage another agent or gallery in that territory, for the duration of the period.
Outside the defined exclusive territory, you are generally free to work with other galleries, sell your work directly, or use other intermediaries—unless the agreement states otherwise.
Sometimes galleries collaborate with other galleries (sub-agents or partner galleries) to sell your work abroad. A consignment contract might include a sub-agency clause that specifies whether the gallery can or cannot delegate its rights to another dealer or gallery. In certain situations, this is agreed in advance, whereas in others, your prior approval is required in each case. The inclusion of sub-agents may call for additional consideration on how commissions will be shared so that you understand how your share of the sale price may be affected.
Reporting and Buyer Information
Consignment contracts often include a requirement for periodic updates, if the consignment is for a long period. For example, the gallery might not only inform you immediately of any sale, but also provide a quarterly report on the status of your works—a summary of which works have sold, which are still available, what interest has been shown, etc. Some contracts require the gallery to share buyers’ contact details with you, which helps with your records and with provenance (the documented history of an artwork’s ownership, which supports its value). Galleries often protect their client lists closely, and in some countries data protection rules also limit what can be shared. A common compromise is that the gallery keeps the buyer’s details on record and provides you with the sale information you need for provenance.
Ask yourself: Does my consignment agreement specify inventory reporting frequency?
Return of Art
When the period ends or if you terminate the consignment early (some agreements allow either party to end consignment with notice, or if the gallery, for example, becomes insolvent), the contract should outline how artworks are to be returned. Typically, the gallery bears the cost of returning unsold art to you, especially if the consignment period has lapsed without sale, because they did not succeed in making a sale. If you decide to pull the work early against the original agreement, you might agree to cover shipping and insurance costs. Make sure also to ensure that the agreement covers how much time the gallery has to return the works, for example, within 30 days of termination. Artwork should be returned in the same condition as delivered, and insured during return transit too.
generally include provisions on the duration of the consignment, insurance coverage, and the allocation of risk of loss. These terms should clarify who is responsible in the event of damage, theft, or loss of the artwork during the consignment period, together with any additional contractual arrangements.
Image credit: AnnaStills