Artist Contracts: Consignment, Commissions, Licensing

A handshake is not a contract. Every professional artist eventually learns this lesson, sometimes painfully. Written agreements protect your work, your income, and your relationships.

Below: the contracts artists actually need, the terms that belong in them, and the legal ideas worth understanding. Note: This is educational information, not legal advice. Consult an attorney for specific situations.

Consignment Agreements

When a gallery sells your work, you need a consignment agreement. This is the most common and most important contract for gallery-represented artists. It is also the one most often replaced by a conversation, which is why so many artists cannot say who is liable when a piece comes back damaged.

Essential Terms

Commission split. The standard is 50/50, though some galleries take 40% and some take 60%. Whatever you agree, get it in writing, because verbal splits are the single most common source of dispute in the gallery relationship.

Duration. How long will the gallery hold the work? Six to twelve months is typical for an initial consignment. Ask whether it renews automatically and what notice either side has to give to end the relationship.

Insurance. Establish who insures the work while it is on consignment, ask for a certificate of insurance rather than an assurance, and find out what happens if a piece is damaged. Gallery policies frequently carry limits below the value of what they are holding, which is covered in more detail in art insurance for artists.

Payment terms. When do you get paid after a sale? Thirty days is standard. Push back on net 60 or net 90 where you can.

Pricing. Who sets prices, and can they be changed without you? Discount policies usually cap at 10-15%, and the agreement should say whether discounts need your approval. If you are unsure what your work should list at in the first place, work through how to price your artwork before the conversation, not during it.

Return of work. How and when can you get the work back, who pays return shipping, and what condition is it expected to come back in?

Exclusivity. Is the gallery asking for geographic exclusivity? Can you still sell directly from the studio? Does the agreement cover specific works or everything you make? The same questions apply when working with art consultants, who often place work under similar terms.

Red Flags in Consignment Agreements

• Gallery takes more than 60%
• No insurance requirement
• Unclear payment terms
• Unlimited exclusivity
• Automatic long-term renewal
• No exit clause

Commission Contracts

Custom artwork orders require clear agreements upfront. Disputes over commissions damage relationships and waste time.

Essential Terms

Scope of Work

• Detailed description of what you will create
• Size, medium, subject matter
• Reference images or sketches
• What is NOT included

Deposit and payment schedule. The standard split is 50% deposit and 50% on completion. Large projects usually go to thirds: 33% deposit, 33% at the midpoint, 34% on completion. Make the deposit non-refundable, since its entire job is covering your time if the client walks.

Approval process. State how many revisions are included, what happens if the client rejects finished work, and where the approval milestones fall (sketch, progress, final). Ambiguity here is what turns a commission into an unpaid open-ended job. Commission work for artists covers running the process itself.

Timeline. Fix a start date and a completion date, name what can move them (revisions, client delays), and say what happens if either side is late.

Ownership and rights. The client owns the physical artwork. You retain copyright unless you transfer it in writing, along with the right to photograph the work and show it in your portfolio. Spell out reproduction licensing separately rather than leaving it implied.

Cancellation. Say what happens if the client cancels. The deposit is typically non-refundable, and a kill fee of 25-50% of the remaining balance covers work already in progress.

Commission Contract Template Sections

1. Parties (your info, client info)
2. Description of work
3. Price and payment schedule
4. Timeline
5. Revisions and approvals
6. Rights and ownership
7. Cancellation terms
8. Signatures and date

Bills of Sale

Every direct sale should have a bill of sale, even casual ones. This protects both parties and provides necessary documentation.

What to Include

• Date of sale
• Buyer and seller information
• Description of artwork (title, medium, dimensions, year)
• Price and payment terms
• Delivery or shipping terms
• Any warranties or guarantees
• Certificate of authenticity (if provided separately)

Simple Bill of Sale Example

BILL OF SALE

Date: [Date]

Seller: [Your name and address] Buyer: [Buyer name and address]

Artwork: "[Title]," [year], [medium], [dimensions]

Sale Price: $[amount] Payment Received: [date and method]

The above-described artwork is sold as-is. Artist retains all reproduction and copyright rights. Buyer receives physical artwork only.

Seller Signature: **___** Date: **___**

Licensing Agreements

When someone wants to reproduce your work (on products, in publications, for advertising), you need a licensing agreement.

Key Licensing Terms

A license is defined by what it does not permit, so the four limits below are the whole negotiation.

Scope of use names exactly what they can do with the image: print, digital, merchandise, advertising. The more specific, the better protected you are. Duration separates a one-time use from a time-limited license of one or five years, and from a perpetual license, which is rare and should cost considerably more. Territory sets the geographic limits, whether US-only or worldwide, and broader territory means a higher fee. Exclusivity decides whether they are the only user or whether you can license the same work elsewhere; exclusive licenses should cost significantly more than non-exclusive ones.

Three further terms are worth insisting on. Attribution says how you will be credited and whether your name and website appear. Compensation can be a flat fee, a royalty percentage, or a minimum guarantee plus royalty. Quality control gives you the right to approve the final product and reject a poor reproduction, which matters most on merchandise. If you are licensing your own reproductions rather than someone else's, edition sizing and print sales covers numbering and pricing conventions.

Copyright Basics

What Copyright Protects

• You automatically own copyright when you create original work
• No registration required for ownership
• Registration provides additional legal benefits

What Copyright Gives You

• Right to reproduce the work
• Right to create derivative works
• Right to display the work publicly
• Right to sell or license these rights

Work for Hire Exception

If you are employed to create art, employer may own copyright. Commission work is generally NOT work for hire unless specifically agreed.

Copyright Registration

Register with US Copyright Office for:

• Ability to sue for statutory damages
• Evidence of ownership
• Public record of your claim

Cost: $45-65 per work (or group registration options)

Protecting Yourself

Always Get It in Writing

Email confirmations count as written agreements. Follow up verbal discussions with email summary: "To confirm our conversation, we agreed that..."

Keep Records

Hold on to signed copies of every contract, the correspondence around each agreement, payment records, and delivery confirmations. Store them somewhere you can search two years later, when the dispute actually arrives. Artsume's application tracker keeps consignments, submissions, and their deadlines in one history rather than spread across an inbox.

Read Before Signing

There is no such thing as standard terms. Cross out anything you do not agree with, ask about language you cannot parse, and take the time you need. Pressure to sign immediately is itself information about the other party.

When to Get Legal Help

Bring in a lawyer for large financial transactions, for contract language you cannot follow, for disputes you cannot resolve directly, and for any work with a major corporation or institution, where the agreement in front of you was written by people who do this full time. The tax and entity questions that come with a growing practice are covered in artist taxes and business structure.

Finding Art Lawyers

• Volunteer Lawyers for the Arts
• State bar association referrals
• Arts organization recommendations

Frequently Asked Questions

The Habit Worth Building

Contracts protect relationships by making expectations clear. The time to discuss terms is before work begins, not when disputes arise.

Everything above reduces to five habits: get it in writing, keep copies, read before signing, know what copyright already gives you, and call a lawyer when the numbers or the language get beyond you. None of them are difficult. They are just easier to skip in the moment when the person across from you seems reasonable.

The same discipline applies wherever you sell. Selling art online covers the platform terms you are agreeing to whether or not you read them.

Ready to manage your art career professionally? Create your free Artsume profile to track opportunities, consignments, and your complete professional history.

Disclaimer: This guide provides general educational information about common art business practices. It is not legal advice. Consult a qualified attorney for specific legal questions.