Part III – Sample of the International Operation on artwork

Most galleries do not purchase work outright. Instead, they accept the work “on consignment.” In effect, they borrow work from an artist for display in the gallery, and then pay the artist only when it sells. This arrangement limits the gallery’s capital outlay, so they can devote more of their resources to paying for rent, staff, publicity, or other costs of doing business.

A consignment arrangement has advantages and disadvantages. For example, one advantage is that consignment can allow a gallery to show risky or difficult work, since their money is not tied up in purchasing inventory. However, a disadvantage is that even though the artist’s work is in the gallery’s possession, the artist isn’t paid until the work is sold. This business arrangement is complicated enough that misunderstandings and difficulties can arise if the parties have not been clear about the terms of the arrangement from the beginning⁷.

IT SIA

Indigenous Torres Strait Islander Art Sample Consignment Agreement

This is an Agreement made:

(day) (date) (month) (year)

BETWEEN:

THE ARTIST (the “Artist”)

NAME:

ADDRESS:

ABN:

AND THE ONLINE ART GALLERY ("The Art Gallery")

NAME: ITSIA - Indigenous Torres Strait Islander Art

ADDRESS: 257 Alma Road

Caulfield North

Victoria 3161

ABN: 21-506-944-705

1. Period of Consignment

1.1 The period of this consignment shall be a minimum of six (6) months from the date of signing the agreement.

1.2 After this time all unsold works will be subject to a continued consignment agreement or returned to the Artist.

2. Pricing Structure

2.1 Pricing Works

2.1.1 The cost price of the work/s will be determined by the Artist in consultation with the Art Gallery.

2.1.2 The Art Gallery will place 33% mark up on the cost price as commission. The cost price plus Art Gallery mark up will total the recommended retail price advertised to the public.

3. The Gallery is not to alter the recommended retail price in any way without the written consent of the Artist.

3. A separate agreement will be made between the Artist and Art Gallery for wholesale purchases by the Art Gallery.

2. Art Gallery Sales

2.2.1 No contract for sale of works will be made unless either the full price is paid or a deposit of 20% is paid.

2. No sold notice will be attached to the work unless a contract for sale has been entered.

2.3 Payment

2.3.1 Artists will receive notification of a sale within fourteen days. The Artist will be required to produce Invoice with ABN or Statement by Supplier before payment is made.

2.3.3 Payment will be made via bank transfer to the artist’s nominated account.

2.4 Statements

2.4.1 At the end of every 3 months, the Gallery will provide the Artist with a written statement of current stock levels.

2.4.2 When a work is sold, a financial statement covering the sale will be forwarded to the Artist. The statement shall use the catalogue number, artist’s name, painting title and size, as supplied by the Artist