Gallery & Industry Terms
Consignment Agreement
Last updated on September 6, 2026
In the art market, a Consignment Agreement is a legally binding contract between an artist or collector (the consignor) and an art gallery (the consignee). Instead of the gallery purchasing the artwork outright to resell it, the gallery agrees to house, market, and sell the piece on behalf of the owner. The gallery only takes ownership of a percentage of the revenue—the commission—once the artwork is officially sold to a buyer.
Key Elements of the Contract
To prevent disputes and ensure absolute transparency, a standard consignment agreement must define several critical variables:
- Pricing Structure: Clearly states the agreed retail price and the minimum acceptable price if collector discounts are permitted.
- Commission Splits: Defines the exact percentage the gallery retains versus the net payout owed to the artist (e.g., a standard 50/50 split).
- Duration: Specifies exactly how long the gallery has the exclusive right to exhibit and sell the artwork before it must be returned to the owner.
- Liability and Logistics: Outlines who is responsible for insurance coverage, framing costs, and shipping while the artwork is in the gallery's physical or digital possession.
Managing Consignments with Gallery Software
Handling physical consignment paperwork and manually calculating splits can quickly become an administrative bottleneck. Modern art gallery management software digitizes this entire process, turning static contracts into actionable data. By linking the terms of a Consignment Agreement directly to an artwork's digital profile, the system automatically knows who owns the piece and what their specific deal is. When the artwork sells, the software uses these pre-saved terms to automatically calculate the exact splits and draft flawless Settlement Statements (payout reports).
