Consignment agreements outline the terms of this business partnership and set expectations for both parties, preventing complications and misunderstandings down the line. Learn how we do it at ArtCloud, and why they are important for all of your artist <--> gallery relationships.
Why Your Gallery Needs Formal Consignment Agreements
In the world of gallery management, the relationship between galleries and artists is more than just a handshake—it’s a formal
business partnership. Yet, many galleries still operate without formal consignment agreements, putting both their business and their artists at risk. Here’s why transitioning to formal consignment agreements is essential for gallery success.
Protecting Your Gallery and Artists
A consignment agreement is a crucial document that outlines the terms of the relationship between the gallery and the artist. This agreement sets clear expectations, helping to prevent potential misunderstandings and legal issues. By formalizing the partnership, galleries protect not only their business but also the interests of the artists they represent.
Key Elements of a Consignment Agreement
When drafting a consignment agreement, several critical components should be included to ensure clarity and mutual understanding:
• Agency: Define the gallery’s authority to sell artwork on behalf of the artist.
• Pricing and Commissions: Clearly outline the percentage of sales revenue that goes to the artist and the gallery. Specify any permissible discounts.
• Payment Terms: Detail how and when the artist will be paid after a sale is made.
• Shipping Responsibilities: Clarify who is responsible for shipping costs to and from the gallery.
• Liability for Damages: Establish who is liable for damage to artwork during transit or while in the gallery’s possession.
By addressing these elements in your consignment agreements, you create a solid foundation for a successful gallery-artist relationship.
Best Practices for Consignment Agreements
While it may seem sufficient to have an artist sign a consignment agreement at the beginning of your partnership, it’s best to have a new agreement for each body of work consigned. This ensures that both the gallery and the artist are clear on the terms specific to each collection. Always include a detailed list of the consigned artworks, complete with images and relevant details.
Streamlining the Process with ArtCloud
Managing consignment agreements can be time-consuming, especially for galleries with a large inventory. ArtCloud’s gallery management software simplifies this process by allowing you to generate consignment agreements directly from your inventory. With ArtCloud, you can sync your contacts, artists, and settings, eliminating the need for manual document creation and reducing the risk of errors.
Conclusion
Formal consignment agreements are no longer just a good practice—they’re a necessity in modern gallery management. By using tools like ArtCloud, galleries can easily create and manage these agreements, ensuring that their relationships with artists are clear, fair, and legally sound. Investing in a robust consignment agreement process is a step toward protecting your gallery’s future and fostering long-term success.
We'd love to show you how Consignments work in ArtCloud.
