[Jewelry making - Article 00283] - Re: [Orchid] Sample consignment agreement

[Steven Brixner]

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    The following was excerpted and adapted from "Business and Legal
    Forms for Crafts" by Tad Crawford. 


    CONSIGNMENT AGREEMENT 

    Agreement made as of this "???DATE", between "???ARTIST NAME"
    (hereinafter referred to as the "Artist"), located at "???ARTIST
    ADDRESS" and "???GALLERY NAME" (hereinafter referred to as the
    "Gallery"), located at "???GALLERY ADDRESS". 

    WHEREAS, the Artist is a professional artist of good standing; and 

    WHEREAS, the Artist wishes to have certain artworks represented by
    the Gallery, and 

    WHEREAS, the Gallery wishes to represent the Artist under the terms
    and conditions of this Agreement, 

    NOW, THEREFORE, in consideration of the foregoing premises and the
    mutual covenants hereinafter set forth and other valuable
    consideration, the parties hereto agree as follows: 

    1.   Scope of Agency.  The Artist appoints the Gallery to act as
    Artist's nonexclusive agent in the following geographic area:
    "???GEOGRAPHIC AREA", for the exhibition and sales of artworks in the
    following media: "???MEDIA".  The Gallery shall document receipt of
    all works consigned hereunder by signing and returning to the Artist
    a Record of Consignment in the form annexed to this contract as
    Appendix A. 

    2.   Term and Termination.  This Agreement shall have a term of five
    (5) years and may be terminated by either party giving sixty (60)
    days written notice to the other party.  The Agreement shall
    automatically terminate with the death of the Artist, a change in
    Gallery ownership or location outside the area of "???GEOGRAPHIC
    AREA", or if the Gallery becomes bankrupt or insolvent.  On
    termination, all works consigned hereunder shall immediately be
    returned to the Artist at the expense of the Gallery. 

    3.   Commissions.  The Gallery shall receive a commission of fifty
    (50) percent of the retail price of each consigned work sold.  In the
    case of discount sales, the discount shall be deducted from the
    Gallery's commission.  The Gallery shall receive a commission of
    forty (40) percent of the retail price of each commissioned work
    sold. 

    4.   Prices.  The Gallery shall sell the works at the retail prices
    shown on the Record of Consignment, subject to the Gallery's right to
    make customary trade discounts to such partners as museums and
    designers. 

    5.   Payments.  The Gallery shall pay the Artist all proceeds due to
    the artist within thirty (30) days of sale for all work on
    consignment.  No sales on approval or credit shall be made without
    the written consent of the Artist and, in such cases, the first
    proceeds received by the Gallery shall be paid to the Artist until
    the Artist has been paid all proceeds due.  Payment for commissioned
    work or special order work is due and payable upon delivery to the
    Gallery. 

    6.   Accounting.  The Gallery shall furnish the Artist with an
    accounting every month in the form attached hereto as Appendix B, the
    first such accounting to be given on the first day of July, 1997. 
    Each accounting shall state for each work sold during the accounting
    period the following information: the Artist's inventory number of
    the work, the date of sale, the sale price, the amounts due the
    Gallery and the Artist, the location of all works consigned to the
    Gallery that have not been sold and if the retail sale price is over
    five hundred dollars ($500), . the name and address of the purchaser.
     An accounting shall be provided in the event of termination of this
    Agreement. 

    7.   Inspection of Books.  The Gallery shall maintain accurate books
    and documentation with respect to all transactions entered into for
    the Artist.  On the Artist's written request, the Gallery will permit
    the Artist or the Artist's authorized representative to examine these
    books and documentation during normal business hours of the Gallery. 

    8.   Loss or Damage.  The Gallery shall be responsible for the
    safekeeping of all consigned artworks.  The Gallery shall be strictly
    liable for loss or damage to any consigned artwork from the date of
    delivery to the Gallery until the work is delivered to the Artist or
    a purchaser.  In the event of loss, the Artist shall receive the same
    amount as if the work had been sold at the retail price listed in the
    Record of Consignment.  In the event of damage that in the opinion of
    the Artist, cannot be repaired, the Artist shall receive the same
    amount as if the work had been sold at the retail price listed in
    the Record of Consignment.  In the event of damage that in the
    opinion of the Artist, can be repaired, the Artist shall receive
    payment for his time and materials used to make the repair. 

    9.   Alterations.  No alterations of any kind may be made to
    consigned artwork by any person other than the Artist without the
    written consent of the Artist.  In the case of alteration without
    written consent of the Artist, the Artist shall receive the same
    amount as if the work had been sold at the retail price listed on the
    Record of Consignment. 

    10.  Returns.  Returns of sold work to the Gallery more than thirty
    (30) days after the original sale date, without the written consent
    of the Artist, become property of the Gallery and the Artist shall
    receive payment therefor if not already paid.  Returns of
    Commissioned work are possible solely at the discretion of the Artist
    and may require a service charge. 

    11.  Insurance.  The Gallery shall insure the work for fifty (50)
    percent of the retail price shown in the Record of Consignment. 

    12.  Copyright.  The Gallery shall take all steps necessary to
    insure that the Artist's copyright in the consigned works is
    protected, including but not limited to requiring copyright notices
    on all photographic or electronic reproductions of the works used for
    any purpose whatsoever. 

    13.  Security Interest.  Title to and a security interest in any
    works consigned or proceeds of sale under this Agreement are reserved
    to the Artist.  In the event of any default by the Gallery, the
    Artist shall have all the rights of a secured party under the Uniform
    Commercial Code and the works shall not be subject to claims by the
    Gallery's creditors.  The Gallery agrees to execute and deliver to
    the Artist, in the form requested by the Artist, a financing
    statement and such other documents which the Artist may require to
    perfect his security interest in the works.  In the event of the
    purchase of any work by a party other than the Gallery, title shall
    pass directly from the Artist to the other party.  In the event of
    the purchase of any work by the Gallery, title shall pass only upon
    full payment to the Artist of all sums due hereunder.  The Gallery
    agrees not to pledge or encumber any works in its possession, nor to
    incur any charge or obligation in connection therewith for which the
    Artist may be liable. 

    14.  Assignment.  This Agreement shall not be assignable by either
    party hereto, provided, however, that the Artist shall have the right
    to assign money due him hereunder. 

    15.  Arbitration.  All disputes arising under this Agreement shall
    be submitted to binding arbitration, before a mutually acceptable
    arbiter in the County of San Diego, California and the arbitration
    award may be entered for judgement in any court having jurisdiction
    hereof.  Notwithstanding the foregoing, either party may refuse to
    arbitrate when the dispute is for a sum of less than five hundred
    dollars ($500). 

    16.  Modifications.  All modifications of this Agreement must be in
    writing and signed by both parties.  This Agreement constitutes the
    entire understanding between the parties hereto. 

    17.  Governing Law.  This Agreement shall be governed by the laws of
    the State of California. 

    IN WITNESS WHEREOF, the parties hereto have signed this Agreement as
    of the date first set forth above. 



Artist______________________Date________________



Gallery_____________________Date________________
         Authorized Signatory, Title


--
Steven Brixner - Jewelry Designer - San Diego CA USA
mailto:brixner AT att.net
http://home.att.net/~brixner 

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