How does a gallery consignment agreement work?

A gallery consignment agreement is a contract between an artist and a gallery that outlines the terms and conditions under which the gallery will exhibit and potentially sell the artist’s artwork. The agreement will specify the period of time the artwork will be kept on display, the length of the consignment time period, the methods of payment, and the percentages of commission the gallery will take. The gallery typically handles the promotion of the artwork, the handling or delivery of the artwork to potential buyers, and the collection of payments from buyers. If a buyer purchases the artwork from the gallery, the gallery is reimbursed for their sales commission and the rest of the payment is sent back to the artist. In Ohio, art galleries are required to provide the artist with a copy of the consignment agreement, and the artist is not obligated to sign if anything in the contract conflicts with state law. The contract should also list the artist’s rights, such as the right to remove the artwork from the gallery if the artist feels the gallery’s performance is unsatisfactory. State laws also require the gallery to keep records of the agreement and provide a statement at the end of the agreement period detailing any artwork sold during that period, including the name, address, and phone number of the buyers. This information is then used to verify the artist’s taxable income. The gallery is responsible for collecting and remitting the sales tax on the artwork sold.

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How does a gallery consignment agreement work?

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