Common Contracts
1 similar Consignment Inventory Agreement contracts
Consignment inventory agreement templateConsignment Inventory Agreement • July 27th, 2021
This is an incredibly important term and best shown by an example. Let’s say a gallery goes bankrupt and the gallery’s landlord takes possession of everything in the gallery pursuant to the gallery’s lease agreement. Can the landlord sell an artist’s work being kept by the gallery on consignment to pay the gallery’s back rent? There are scenarios where a landlord can, in fact, do so if an art consignment agreement does not address that the artwork is not an asset of the gallery. The artwork can be presumed to be the property of the gallery, as it was inside the property at the time of repossession and the landlord may have a right to sell the artwork without accounting to the artist. If this happens, the artist would likely not have legal recourse against the landlord, and would have to look to the gallery to get paid. While some states have passed statutes protecting creditor seizures of artwork in consignment arrangements, an artist should strive for the best protection possible and
