What is a consignment agreement?

A consignment agreement is a contractual agreement between an artist and a gallery owner in which the artist agrees to let the gallery owner display, promote, and/or sell their artwork. This type of agreement is common in Nebraska, as many businesses in the state operate art galleries. In a consignment agreement, the artist retains ownership of their artwork while the gallery owner takes a commission on any artwork sold. The exact terms of the agreement will vary from artist to artist, but in general, the artist and the gallery must both agree on the amount of the commission, the period of exhibition, and any advertising and promotion costs that must be paid. The gallery must also provide proof that the artwork was indeed sold, and the artist must provide accurate paperwork for the sale. The gallery is responsible for protecting the artwork while it is on display, and the gallery will usually insure it against any loss or damage. Any payments from the sale must be forwarded to the artist, minus the gallery’s commission. The gallery may also be responsible for any returns or refunds, depending on the terms of the agreement. In essence, a consignment agreement is an agreement between the artist and the gallery owner whereby the artist entrusts the gallery with their artwork in exchange for a percentage of any sales. By ensuring that both parties are in agreement on terms and conditions, this sort of agreement can provide a safe and secure way for both parties to benefit from the sale of artwork.

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What is a consignment agreement?

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