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Bulletins Story:
ARTIST/GALLERY CONTRACTS: A NEW INITIATIVE
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Date:
04.07.2006
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This week sees the publication by Arts Council England and the
Scottish Arts Council of a series of Contract Checklists and
Q&As (written by Nicholas Sharp, consultant to Swan Turton) for
galleries participating in the 'Own Art' scheme, and for the
artists whose work they sell.
The 'Own Art' scheme offers interest-free credit (up to £2,000)
to art buyers. The scheme's main aim is to make it more affordable
for individuals to buy high quality contemporary art and craft and
was extended to London galleries for the first time in 2006. There
are currently some 325 participating galleries. Full details are
available on the English and Scottish art councils' websites at
www.artscouncil.org.uk/ownart
and www.scottisharts.org.uk.
The Contract Checklists identify the key contents to be included
in artist/gallery contracts and cover three types of
arrangement:
1. an exhibition contract for a solo or mixed show;
2. a consignment agreement for use when artists leave work
with galleries on consignment/'sale or return'; and
3. a long-term representative arrangement between artist
and gallery.
The Q&As cover issues such as:
- What form should the contract take?
- How should the parties go about negotiating the contract?
- How does the new Artist's Resale Right affect these
contracts?
- Is the gallery under an obligation to share client information
with its artists?
- What is an 'exclusive' contract?
- How is VAT treated?
The scheme's first evaluation in March 2006 showed that, in the
first 18 months of operation, it generated 3,595 sales, at a value
of some £2.5 million. Income to artists over this period was
estimated at £1.6 million. Some 30% of buyers were first time
buyers and, encouragingly, 98% of buyers said they would consider
taking out another Own Art loan.
Many British galleries have been reluctant to offer contracts to
their artists, believing that 'trust' is more important than
written agreements. But, as the Arts Councils have stated in the
introduction to the new material: 'The chances are greater
that [artist/gallery relationships] will be successful and
longstanding if the parties agree and sign a contract that
identifies the key points and clearly sets out what is expected of
each party.'
The publication of this guidance material will offer artists and
galleries alike useful assistance in this process. They are also a
step in the direction indicated by the House of Commons Select
Committee on the Art Market in March 2005 whose recommendations
included the need for Codes of Practice and Best-Practice
Guidelines in artist-dealer relationships.
The published material is an extension of Nicholas' work over
many years encouraging best practice in the visual arts sector via
developing model contracts, training, articles, information on
legal topics and legal support to artists, arts organisations and
businesses.
The Checklists and Q&A can be found on the ACE
website: http://www.artscouncil.org.uk/ownart/galleries_info_who.html
Nicholas Sharp
Photography & Visual Arts
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