Texas Art Consignment Agreement

Texas Art Consignment Agreement

Before you use this: This form is for works of art delivered to a Texas art dealer for exhibition or sale. Texas Occupations Code Chapter 2101 protects the art and sale proceeds from the dealer's creditors. The Article 9 definition of a consignment excludes a covered delivery under Chapter 2101. This form does not cover sound-recording distribution.

This Agreement is made on [__/__/____] between Consignor [________________________________], address [________________________________], and Art Dealer / Consignee [________________________________], Texas business address [________________________________]. Consignor's relationship to the works is [artist / owner / other: ________________________________].

1. Works and delivery

Consignor delivers the works listed in Exhibit A for exhibition or sale on consignment. Dealer acknowledges receipt, condition, and delivery date by signing Exhibit A. Later works require a signed addition. Consignor represents that it may consign the works and discloses known liens and third-party claims: [________________________________].

Dealer will keep the works at [________________________________], identify them as consigned in its records, and not pledge, encumber, loan, alter, or transfer them except through an authorized sale without Consignor's prior written consent. Dealer will promptly notify Consignor of a creditor claim, levy, seizure, loss, or damage involving a work or sale proceeds.

2. Display and sale authority

Dealer may display the works at [gallery / website / event: ________________________________] and use images solely to market them during the term. Artist credit: [________________________________]. Any other use or location requires written approval. Dealer may sell a work for at least the minimum amount listed in Exhibit A. A lower price, installment sale, trade, or purchase by Dealer or its affiliate requires Consignor's prior written approval identifying the work and terms.

3. Commission, proceeds, and accounting

Dealer earns [____]% of the actual price for a completed authorized sale. Approved itemized expenses: [________________________________]. No other expense may reduce Consignor's share. Within [____] calendar days after cleared buyer payment, Dealer will provide a statement showing work, sale date, sale price, buyer funds received, commission, approved expenses, and amount due, and pay Consignor by [________________________________]. Dealer will keep the works and sale proceeds identifiable in its books and make related records available on reasonable written request.

The parties acknowledge that, under Texas Occupations Code § 2101.003, art delivered to an art dealer for exhibition or sale and the proceeds of its sale are not subject to the dealer's creditors' claims, liens, or security interests. Dealer will not represent either the works or the sale proceeds as assets available for its own borrowing. Dealer will promptly apply proceeds to its payment obligations under this Agreement.

4. Care, insurance, term, and return

Dealer will use professional care, promptly report theft, loss, or damage, and maintain this insurance: [carrier / type / limit / deductible / loss payee: ________________________________]. The parties allocate loss while works are in Dealer's possession as follows: [________________________________]. Agreed record values appear in Exhibit A; they are used for inventory and insurance and do not waive any applicable statutory protection.

The term begins [__/__/____] and ends [__/__/____]. Either party may terminate on [____] calendar days' written notice; Consignor may demand prompt return after unauthorized disposition or overdue payment. Within [____] calendar days after termination, Dealer will return unsold works to [________________________________] at [Dealer / Consignor] expense with a signed condition inventory. Accrued sale and payment duties survive termination.

5. Notices and signatures

Notices go to the addresses below by [email / mail / delivery: ________________________________] and are effective on [________________________________]. Changes require a writing signed by both parties. Texas law governs. This Agreement and signed exhibits are the entire agreement concerning the works, subject to applicable law.

Consignor signature: [________________________________] Date: [__/__/____]

Printed name / title: [________________________________] Email / mailing address: [________________________________]

Art Dealer / Consignee signature: [________________________________] Date: [__/__/____]

Printed name / title: [________________________________] Email / mailing address: [________________________________]

Exhibit A — Work inventory and delivery receipt

Condition exceptions and photographs attached: [________________________________]

Dealer acknowledges receipt: [________________________________] Date: [__/__/____]