In the case of consignment, the consignor delivers a work of art to the consignee, often a dealer or expert, for sale to third parties
Although the consignor retains ownership of the object, consignment entails a number of risks. For instance, consignment makes an object more vulnerable to damage, theft or misappropriation. Clearly defined liability clauses in a consignment agreement are therefore essential.
Consignors should be well aware of the legal consequences of general terms and conditions applicable to consignment agreements with auction houses or art dealers. This is even more true for consignors who have no knowledge of the art trade, for example when the person in question inherits a collection or acts as executor of an estate.
The importance of a written agreement cannot be overemphasised. A consignment agreement should provide a clear and unambiguous description of, among other things, the powers of the consignee and the circumstances under which delivery and transfer of ownership will take place. Failure to do so can lead to major financial consequences in case of seizure, bankruptcy or fraud.
Do you have a legal question or want advice? If so, please feel free to contact us.
GMW lawyers will be happy to help you with all your art law issues.
Do you have a question? Feel free to contact us.
"*" indicates required fields