How the Art Market is Adopting Digital Contracts to Overcome Unclear Agreements

October 5, 2023

Contracts should be the foundation of trust in art transactions. However, the reality is that in the art market contracts are often based loosely on “handshake” agreements between an artist and a gallery, or, are missing completely.

Art world commentator Jerry Gogosian recently highlighted this important issue on instagram, remarking upon the vulnerable situation the absence of a legitimate contract can leave artists in: “It’s very easy to take advantage of someone when the terms of a working relationship are unclear, right?”

Digital contracts offer a solution to this problem, improving security and fostering better relationships between galleries, artists, and collectors. Let’s analyse the case of Salesroom, our suite of digital solutions that helps galleries automate routine tasks and streamline processes, from Consignment Agreements to Sales Agreements.

Consignment Agreements on Salesroom

Clearly Defined Consignment and Resale Terms: On Salesroom, Consignment Agreements are signed by both the artist and the gallery, enabling them to collaboratively define consignment and resale terms. This approach fosters trust and clear communication between parties, setting the stage for successful transactions.

Digital Certificate of Authenticity: Salesroom's Consignment Agreements provide a digital Certificate of Authenticity. This document is more than just a paper trail; it's a digital fingerprint that verifies the artwork's provenance and authenticity.

Transparent Commission Split: The Consignment Agreement on Salesroom specifies the primary sale commission split between the artist and the gallery.

Registration on the Arcual Blockchain: To further safeguard the terms of the agreement, Salesroom's Consignment Agreement is registered on the Arcual blockchain. This adds an extra layer of security and trust to the transaction.

Customisable Resale Terms: Salesroom enables customisable resale terms, including artist and gallery royalties. This flexibility ensures that all parties can adapt to changing market dynamics.

Sales Agreements on Salesroom

Clear Transaction Terms: Sales Agreements on Salesroom outline transaction terms clearly. This includes pricing, payment schedules, and delivery details, leaving no room for ambiguity.

Protection for Both Buyer and Seller: By defining the conditions under which a sale is made, Sales Agreements protect the interests of both the buyer and the seller, reducing the potential for misunderstandings and disputes.

Enhanced Legal Security: Sales Agreements on Salesroom mean that all parties have a legally binding document that can be relied upon in case of disagreements.

Salesroom, with its integrated Consignment Agreements and Sales Agreements, upgrades and simplifies through digitisation the way that galleries, artists and collectors approach contracts.

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