Protection in the event of Bankruptcy

CARFAC recommends that when consigning works to a gallery, you have a written agreement with the gallery. If the gallery does not have an agreement, be prepared with your own and know which clauses you consider negotiable. The following are some sample clauses which could be included in such an agreement:

FAQ‘S What protection for artists is there in the event a gallery goes under and assets are seized and/or sold off? CARFAC recommends that when consigning works to a gallery, you have a written agreement with the gallery. If the gallery does not have an agreement, be prepared with your own and know which clauses you consider negotiable. The following are some sample clauses which could be included in such an agreement: All works are the property of the artist; further works may be attached as schedule A. Insolvency and Artist's Property All borrowed or consigned works remain the property of the Artist. If the Borrower becomes insolvent, all the Artist's works shall be returned to the Artist together with any monies owning to the Artist, and this agreement shall terminate. Assignment The Borrower shall not assign this agreement to another party. ("Party" here means either a company or a person who is not a signatory to this agreement.) Payment All monies collected from sales from the artist's work shall be held in a separate trust account on their behalf until they are remunerated as per the agreement. [it would be good to also have a payment schedule] This is a key issue, separating your money from the dealer's. Make sure the contract covers damage and insurance, and that the person signing it has signing authority. *This page is continually under construction.* Disclaimer: CARFAC BC is an organization run by volunteers, in essence, artists working for artists. These Frequently Asked Questions are produced by CARFAC BC as an informational service to provide a summary of issues of interest to practising visual artists. They are intended to be used as guidelines, not to replace professional advice, which may be required before taking action. CARFAC BC cannot assume liability for problems that may arise from their use or for any errors or omissions contained herein. Views expressed on this site are not necessarily those of CARFAC BC.
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All works are the property of the artist; further works may be attached as schedule A.
Insolvency and Artist's Property
All borrowed or consigned works remain the property of the Artist.
If the Borrower becomes insolvent, all the Artist's works shall be returned to the Artist together with any monies owning to the Artist, and this agreement shall terminate.
Assignment
The Borrower shall not assign this agreement to another party. ("Party" here means either a company or a person who is not a signatory to this agreement.)
Payment
All monies collected from sales from the artist's work shall be held in a separate trust account on their behalf until they are remunerated as per the agreement. [it would be good to also have a payment schedule] *This is a key issue, separating your money from the dealer's.*

Make sure the contract covers damage and insurance, and that the person signing it has signing authority.

Disclaimer: CARFAC BC is an organization run by volunteers, in essence, artists working for artists. These Frequently Asked Questions are produced by CARFAC BC as an informational service to provide a summary of issues of interest to practising visual artists. They are intended to be used as guidelines, not to replace professional advice, which may be required before taking action. CARFAC BC cannot assume liability for problems that may arise from their use or for any errors or omissions contained herein. Views expressed on this site are not necessarily those of CARFAC BC.

What protection for artists is there in the event a gallery goes under and assets are seized and/or sold off?