Artist Contracts and Legal Basics: Consignment, Commissions, and 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.
This guide covers the essential contracts artists need, what terms to include, and basic legal concepts for protecting your practice. Note: This is educational information, not legal advice. Consult an attorney for specific situations.
✅ Quick Answer
Always get agreements in writing, even with friends
Keep signed copies of every contract
Read everything before signing - there are no standard terms
When in doubt, consult a lawyer specializing in art law
Essential Artist Contracts Contract Type When Used Key Terms Consignment Agreement Gallery representation Commission %, duration, insurance, return Commission Contract Custom artwork orders Deposit, approval process, rights, cancellation Bill of Sale Direct sales Price, payment terms, delivery, warranties Licensing Agreement Reproduction rights Usage scope, duration, territory, fees Exhibition Agreement Shows, installations Insurance, shipping, sales terms, duration
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.
Essential Terms#
Commission Split
Standard is 50/50 (gallery keeps 50%, artist receives 50%)
Some galleries take 40% or 60%
Get this in writing - verbal agreements cause disputes
Duration
How long will gallery hold work?
6-12 months typical for initial consignment
Automatic renewal terms?
Notice required to end relationship?
Insurance
Who insures work while on consignment?
Gallery should have insurance covering your work
Get certificate of insurance
What happens if work is damaged?
Payment Terms
When does artist get paid after sale?
30 days after sale is standard
Avoid net 60 or net 90 terms if possible
Pricing
Who sets prices?
Can prices be changed?
Discount policies (usually 10-15% max)
Artist approval required for discounts?
Return of Work
How and when can you get work back?
Who pays return shipping?
Condition requirements on return?
Exclusivity
Geographic exclusivity?
Can you sell directly from studio?
Representation for specific work vs all work?
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
Standard: 50% deposit, 50% on completion
For large projects: 33% deposit, 33% midpoint, 34% completion
Non-refundable deposit (covers your time if cancelled)
Approval Process
How many revisions included?
What happens if client rejects finished work?
Approval milestones (sketch, progress, final)
Timeline
Start date and completion date
What affects timeline (revisions, client delays)
Consequences of delays on either side
Ownership and Rights
Client owns physical artwork
Artist retains copyright (unless transferred)
Artist retains right to photograph and display
Licensing terms for reproduction
Cancellation
What if client cancels?
Deposit typically non-refundable
Kill fee for work in progress (25-50% of remaining balance)
Commission Contract Template Sections#
Parties (your info, client info)
Description of work
Price and payment schedule
Timeline
Revisions and approvals
Rights and ownership
Cancellation terms
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#
Scope of Use
What specifically can they do?
Print, digital, merchandise, advertising?
The more specific, the better
Duration
One-time use vs ongoing
Time-limited license (1 year, 5 years)
Perpetual license (rare, should cost more)
Territory
Geographic limits (US only, worldwide)
Broader territory = higher fee
Exclusivity
Exclusive: Only they can use it
Non-exclusive: You can license to others too
Exclusive licenses should cost significantly more
Attribution
How will you be credited?
Name and website included?
Compensation
Flat fee
Royalty percentage
Minimum guarantee plus royalty
Quality Control
Right to approve final product?
Can you reject poor quality reproduction?
Licensing Fee Factors Factor Lower Fee Higher Fee Duration One-time use Perpetual Territory Local/regional Worldwide Exclusivity Non-exclusive Exclusive Usage Editorial Commercial/advertising Client size Small business Major corporation
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#
Signed copies of all contracts
Correspondence about agreements
Payment records
Delivery confirmations
Read Before Signing#
No such thing as standard terms
Cross out terms you do not agree with
Ask questions about unclear language
Take time - do not sign under pressure
When to Get Legal Help#
Large financial transactions
Confusing contract language
Disputes that cannot be resolved directly
Work with major corporations or institutions
Finding Art Lawyers#
Volunteer Lawyers for the Arts State bar association referrals
Arts organization recommendations
Keep Your Career Organized Track your consignments, sales, and opportunities with Artsumé.
Create Free Profile Frequently Asked Questions# Frequently Asked Questions Do I really need written contracts for small sales? At minimum, provide a bill of sale or receipt. For sales over a few hundred dollars, yes. Written agreements prevent misunderstandings about what was purchased, payment terms, and rights. A simple email confirmation is better than nothing.
What if a gallery does not want to sign a consignment agreement? Do I keep copyright when I sell a painting? What percentage should I charge for licensing? What if I cannot afford a lawyer? Can I use contracts I find online? Conclusion#
Contracts protect relationships by making expectations clear. The time to discuss terms is before work begins, not when disputes arise.
Essential practices:
Get everything in writing
Keep copies of all agreements
Read before signing
Know your rights (especially copyright)
Seek legal help when needed
Ready to manage your art career professionally? Create your free Artsumé profile to track opportunities, consignments, and your complete professional history.
Last updated: January 2025
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.
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