What a consignment agreement is and isn't
A consignment agreement is a contract under which you place work with a gallery or dealer for sale while retaining ownership of that work until it sells. The gallery earns a commission on sales, typically a percentage of the retail price, and returns unsold work at the end of the agreement period.
This structure protects the artist in one fundamental way: you do not sell your work to the gallery, so the gallery cannot sell it for less than the agreed retail price, keep the proceeds, or refuse to return it. Those things happen anyway, frequently, when artists work without written agreements. This is the primary reason a written contract is non-negotiable.
Commission rates: What is standard
The standard gallery commission on primary market sales is 50% of the retail price. Some galleries, particularly in major markets like New York, London, and Paris, take 60%. Artist-run spaces and cooperative galleries typically take 20 - 30%.
Commission is calculated on the retail price, meaning the price at which the work sells to the collector, not on the 'hammer price' or any discounted amount. If a gallery offers a collector a 10% discount without your written consent, that discount should come out of the gallery's commission, not yours. This must be written explicitly into the contract.
Do not agree to a commission above 60% under any circumstances. If a space asks for more, walk away.
The clauses that will cost you if you miss them
Exclusivity clauses specify the geographic territory within which the gallery has the exclusive right to sell your work. A contract giving a gallery in Budapest exclusive representation for Central Europe means you cannot sell to collectors in Vienna, Prague, or Warsaw directly or through other dealers without paying the gallery's commission. Read these clauses carefully and negotiate the territory down to the minimum, ideally to the city, not the country or region.
Consignment period is the duration for which the gallery holds the work. Six to twelve months is standard. If the contract does not specify a return date, insert one. Open-ended consignment periods allow galleries to hold work indefinitely without obligation to sell it.
Insurance and liability clauses specify who is responsible for the work while it is in the gallery's possession. Most professional galleries insure consigned work at full retail value. If this is not stated in the contract, add it. If the gallery cannot or will not insure the work, their commission rate should reflect that risk transfer to you.
Payment terms: The clause artists skip and then regret
Payment terms specify when and how you receive your share of a sale. The standard is 30 days after the sale completes. Some galleries pay quarterly, which is acceptable for established relationships but problematic for a first engagement.
The critical clause: payment should be triggered by the sale, not by the gallery receiving payment from the collector. The distinction matters because galleries frequently offer collectors extended payment terms. If the collector pays over three months and the contract says you are paid when the gallery receives funds, you may wait three months or more for money you are entitled to immediately. The contract should read: 'Artist payment due within 30 days of sale confirmation, regardless of collector payment schedule.'
Frequently asked
Yes, and you should. Commission rates are less negotiable than territory, payment terms, and insurance provisions. Focus your negotiation on the clauses that carry the most risk. A gallery that refuses to negotiate any terms of a contract is a gallery that is not treating you as a professional partner.
Without a written contract, you have significantly less legal protection. With a contract, your ownership of unsold work is documented and you can pursue recovery through legal channels. Keep a complete inventory, with images, dimensions, and retail values, of every work placed on consignment anywhere.
For a first gallery relationship or any agreement with significant financial implications, yes. Many arts organisations offer free or subsidised legal clinics for artists. The cost of a one-hour legal review is trivial compared to the cost of a dispute with a gallery over an ambiguous contract.