LEGAL ISSUES FOR ARTISTS Gallery Agreements

LEGAL ISSUES FOR ARTISTS

Gallery Agreements • In past, some galleries gave artists monthly stipend while artists developed work (now very rare) • Stipend was deducted from sales • Often gallery would tell artist kind of work to make -- bad situation

Gallery Agreements • Today galleries work on consignment -- rarely buy outright • Average commission around 50% • When on consignment, gallery is responsible for protection of your work • You own work until you have been paid in full

Net Pricing • Net pricing is agreement where you get $ X. XX for work regardless of final sale price • If work sells for more than anticipated, you lose -- avoid net pricing

Contracts • If you sign with a gallery, if possible, have clearly worded contract • Possible to set agreement simply by letter stating your understanding of arrangements -- you sign letter and have gallery sign • Letter is most basic form of contract -- in some situations can legally protect you but better to get more formal agreement (VLA)

Contracts Remember: Good, clear, well-articulated contract serves both parties But: Galleries hold the power and many don’t like contracts. Weigh the advantages and disadvantages. As a young artist, you have less leverage

Standard Contract Includes: • • • Scope of work Title and receipt of work Prices, discount, commissions Payment schedules, approval sales Accounting, sales contract, rentals Copyright, delivery, return costs Loss or damage, insurance, exhibitions Duration of agreement, exclusivity Assignability, termination, arbitration

Contract terms: • Scope of Work = amount/kind of work dealer will sell – Ex: painting and sculpture or just paintings. Older work and/or current? Complete output or can you retain rights to pieces for gifts, bartering, requests and studio sales?

Contract terms: • Title (not name of work -- more like car title) = you own everything you are giving them. You retain title until you are paid in full • Receipt = stipulate that you receive paper receipt for each piece you give gallery. It includes size of pieces, mediums, wholesale/retail prices, years completed. Every time you make a delivery you should get new Receipt (individual work) or Consignment Sheet (multiple works).

Contract terms: • Price = Determine prices with gallery -- they know what they can sell and what they can charge. Stipulate deducting material cost before commission is paid • Discount = given to museums, interior designers, and architects. Stipulate discount split -- if gallery discounts 10% -- you pay five, they pay five • Stipulate gallery cannot discount without your permission (if you absorb part of cost). Stipulate gallery can discount as much of their commission as they want without consultation

Contract terms: • Galleries charge different commission rates (based on fame & how much money artist generates) • Gallery may charge lower commission on unique work / higher commission on editions • Stipulate lower commission on studio sales. Don’t avoid this issue and don’t hide sales. • Stipulate you are paid in full within thirty days of date of sale (be willing to modify for installment sales but include in contract).

Contract terms: • Stipulate dealer assumes full risk for defaults -- if client defaults, the gallery still pays you • Urge gallery to receive upfront payment on approval sales (refunded if the work is returned) -- harder to force payment for something a client already holds • Stipulate you can look at dealer’s financial records regarding your work • Stipulate dealer must disclose who bought work

Contract terms: • Insist dealer uses sales contract when work is sold that stipulates you retain copyright, you can borrow work for exhibition, you approve or supervisor repairs, you get royalty on re-sale • Allow gallery a commission on re-sale royalty • Stipulate you pay for delivery of work to the gallery but gallery pays for return

Contract terms: • Stipulate dealer is responsible for loss or damage of consigned work from date delivered until work is repossessed by artist • Stipulate gallery have all-risk insurance policy against fire, flood, theft and damage • Stipulate work is insured while in gallery and while in transit to exhibitions and clients. • Stipulate insurance should cover entire wholesale amount (your share of sale price)

Contract terms: • If contract is long-term, stipulate: – Where exhibitions take place – How much space allotted (number of rooms / running footage) – Frequency of solo exhibitions / group exhibitions – Who selects work for the show – Who pays for installation – Who pays for framing /stands – Who pays for gallery prep (partitions, painting, fixtures)

Contract terms: – Who pays for advertising? – What does it buy? • (magazine advertising, invitations, postage? )

Contract terms: • Be specific: – What magazine? What size ad? B/W or color? – What kind of invitation and how many? How many mailed? – Is there a brochure or catalog? Who will pay for it? Who will decide on the format, who controls quality and quantity? – Who pays for the reception? What does it buy and for how many people?

Contract terms: • Stipulate you can withdraw from an exhibition if not up to your standard (loaned and group) • If possible, stipulate one year contract with option to renew at the end of year • Stipulate if gallery doesn’t sell X works within a given time frame, agreement can be terminated with XX day notice in writing (conversely, if you fail to deliver X number of works promised, gallery can likewise terminate)

Contract terms: • Avoid assignment stipulations (gallery can sell your contract to another gallery) • Should death terminate agreement or should it remain in effect with your estate and heirs? – Sharshal Estate