The contract types in detail

An art purchase agreement is a sales contract between an artist and the buyer of a work of art. This type of contract therefore regulates the legal relationship between the contracting parties when it comes to the purchase of a work of art.

Below you will find a list of important points that should be included in an art purchase agreement:

• Description of the artwork: The contract should contain a detailed description of the artwork, including the medium, size, colours, and other special features.

• Condition of the artwork: Art purchase agreements usually document what the artwork looked like at the time of sale and delivery ("condition report") and provide a guarantee for the condition of the artwork. 

• Price and terms of payment: One of the most important contractual points is the price of the artwork to be purchased. The currency and the specific payment terms, such as deposit, payment periods, and instalments, should also be specified in the contract. 

• Delivery and transport: Arrangements for delivery and transport are particularly important when delivering works of art. You and your contractual partner should agree on the delivery address, delivery deadline, and mode of transport. You should also clarify in advance which party will bear the costs of transport and how the artwork will be insured during transport.

• Transfer of ownership and transfer of risk: The contract should also regulate when ownership of the artwork is transferred to the buyer and who bears the risk of loss, damage, or destruction of the artwork (e.g. during transport). 

• Guarantees and warranties: Art purchase agreements usually also contain special warranties for the artwork, such as a guarantee for the authenticity or originality of the artwork.

• Return and exchange conditions: The contract should regulate the conditions under which the artwork can be returned or exchanged and the period within which this may take place.

• Intellectual property: The sale of a work of art should also regulate the extent to which the artist's copyrights are transferred to the buyer. The contract should regulate who owns the intellectual property rights to the artwork and who has the rights to reproduce or sell the artwork. The contract should also stipulate that the artist is granted access to the work if, for example, they wish to produce a catalogue of their own works and require a photograph for this purpose. See the chapter on copyright for details.

An art purchase agreement is an important instrument for clearly defining the rights and obligations of the parties to the contract and helps to avoid potential disputes.

The event contract governs the legal relationship between an artist and an organiser with regard to the planning and staging of an event. It sets out the terms and conditions such as the type and manner of performance, duration and location of the event, and the artist’s remuneration.

Below you will find a list of important points that should be included in an event contract:

• Type of event: The contract should include a description of the event, for example whether it is a concert, exhibition, or theatre performance.

• Date and place: The contract should also specify the location, date, and time of the event. 

• Fee and remuneration: The artist’s fee and remuneration constitute an important contractual point. The contracting parties should also determine whether the organiser will cover travel expenses and catering costs.

• Performance conditions: The contracting parties should regulate the specific conditions for the performance, such as the duration, repertoire, or number of performances.

• Technical requirements: If the artist has certain technical requirements for the performance, these should also be specified in the contract. These include, for example, the stage equipment, lighting, or sound technology.

• Insurance: The contract should regulate the insurance conditions for the event, such as liability.

• Intellectual property: The contracting parties should clarify who holds the intellectual property rights to the event, whether and how the event is exploited under copyright (ancillary copyright) (e.g. by recording the event or broadcasting it live), and who receives the rights of use to these reproductions. In the chapter on copyright, you can find out how performing artists and event organisers can commercially exploit the performance.

• Cancellation and withdrawal: The conditions and deadlines under which each of the contracting parties can cancel or withdraw from the contract should be specified. 

It is recommended that a "technical rider" with the technical equipment requirements and a "hospitality rider" with details of the desired catering and accommodation be attached separately to the contract. These are appendices to the event contract. It should be noted that all riders are integral parts of the event contract.

An author's contract regulates the legal relationship between a publisher and the author of literary works, music, or film scripts. It regulates, for example, the terms of publication, rights of use, and remuneration for the use of the work.

The following points are usually regulated in an author's contract:

• Type of work: The contract should contain a description of the work; for example, that it is a novel, a poetry book, or a screenplay.

• Rights of use: There must not be any provisions on the rights of use of the work: the contract specifies the rights of use the publisher receives, such as publishing rights, reproduction rights ("copyright"), filming rights, or editing rights. If the publisher does not receive editing rights, they may not make any changes to the work. The contract should also clarify who is authorised to sell reproductions of the work. 

• Fee and remuneration: The author's remuneration should also be specified, including any advances or royalties. The contract may also stipulate that the author should receive a percentage of the sales proceeds. 

• Publication: The contract should regulate when and in what form the work will be published, for example as a book, e-book, or audio book.

• Contract duration: The contracting parties should agree on the duration of the contract and how long the publisher has the right to exploit the work.

• Cancellation and withdrawal: The conditions and deadlines under which each of the contracting parties can cancel or withdraw from the contract should be specified.

An author's contract is an important step in the publication of a literary work, piece of music, or film script. Clear and unambiguous regulations should avoid disputes later on, especially concerning the transfer of rights of use. See also the chapter on copyright.

It is not only possible for artists to sell a physical work of art to earn money or be paid for a performance; they can also commercially exploit the copyrights and ancillary copyrights to their artistic work. As such, they are able to authorise other persons to use their artistic work by granting them exploitation rights (rights of use) and demand remuneration for this ("usage agreement"). 

When artists grant other people the rights to use their artistic work, they conclude a licence agreement. Below you will find a list of points that can be included in a licence agreement:

• Type of work: The work that is the subject of the licence agreement should be described precisely (e.g. which specific piece of music, painting, or film).

• Rights of use: The rights of use to be transferred constitute the core of the licence agreement:

  • The agreement should include a precise description of the specific rights of use that are being transferred. Rights of use that are not explicitly granted to the licensee generally remain with the author.

  • The contracting parties should also clarify whether an exclusive licence is being granted. If the licence is exclusive, it is only the licensee who may exploit the work to the extent granted; not even the artist may exploit the artistic work themselves or allow others to use it.

• Remuneration: The licensor's remuneration may be a lump sum or recurring payments for individual use. Remuneration for granting rights of use is also known as royalties or licence fees.

• Term of contract: After expiry of the period of use stipulated in the contract, the rights granted revert to the licence holder. The contract may also provide for the granting of rights of use for an unlimited period of time. However, please note the term of protection of copyrights applicable in the respective country. In most countries, works of art lose their copyright protection after 70 years from the death of the author and can then be used freely.

• Licence territory: Licensees may only exploit the work in the country or countries specified in the agreement. A worldwide licence can also be granted instead.

• Copyright: The contract should regulate who owns the copyright to the work and who has the rights to reproduce or sell the work.

• Other copyright obligations: The contract should state whether and how the artist wishes to be named when the artwork is utilised. For example, they parties may agree that the copyright symbol © should be included with the work’s name and date of creation.

• Cancellation and withdrawal: As in all contracts, reasons for cancellation and deadlines should be specified as well as whether it is possible to withdraw from the contract within a certain period.

Info: See the Copyright chapter for detailed information on Austrian copyright law. In Austria, non-exclusive licence agreements are also referred to as work usage agreements, while exclusive licence agreements concern the granting of work usage rights. 

Artists can commission so-called collecting societies to commercially exploit their artistic work in a specific artistic genre. For this purpose, artists conclude a rights administration agreement with the collecting society. This agreement stipulates which rights of use to which works the artist transfers to the collecting society, how the collecting society will exploit the work, and how the artist is to be remunerated. 

Depending on the type of work in question (e.g. musical works, literary works, films), the details of neighbouring rights agreements vary. However, the following contractual points are usually regulated:

• Type of work/repertoire: The contract must specify which rights of use to which works the artist(s) wishes to transfer to the collecting society for management. It is often agreed that the rights to all works produced in future are also transferred to the collecting society.

• Rights of use: The transfer of rights of use is at the core of the rights administration agreement. It should precisely define which specific rights of use are granted to the collecting society, the period for which the rights are granted, and whether the work may be utilised worldwide or only in certain countries. Rights are usually granted on an exclusive basis. 

• Remuneration of the artist: The collecting society concludes licence agreements on behalf of the artist and collects the remuneration paid. After a certain period of time, the collecting society must settle the income and pay it to the artist. 

• Obligations of the collecting society: The collecting society undertakes to safeguard the rights of the artist and take action against unauthorised use of their art.

• Contract duration: The contract can be concluded for a specific period or for an indefinite period. The possibility of extending the contract should also be taken into account.

• Cancellation and withdrawal: As in all contracts, reasons for cancellation and deadlines should be specified as well as whether the contract can be withdrawn from within a certain period.

Find out more about collecting societies in the chapter on copyright law. These are very important for the professional activities of artists. 

In order to exhibit their artwork, artists conclude an exhibition agreement with the exhibiting institution (e.g. a gallery or museum). In this contract, they agree which works are to be exhibited and under what conditions. In the case of exhibitions in galleries, particulate attention is paid to regulating whether and under what conditions the gallery is allowed to sell artworks. 

Below you will find a list of some important points that should be included in an exhibition agreement:

• Selection of works: The contracting parties should clarify in advance which works of art will be exhibited, or whether a specific person will select the works to be exhibited from a repertoire of artworks. They should also determine who is responsible for the placement of the works (e.g. a curator).

• Exhibition location and period: The works of art shall be exhibited at a specific location within the period agreed by the contracting parties. 

• Method of presentation: Especially in the case of particularly valuable or sensitive works (e.g. drawings, works made of fragile materials such as plaster or glass), the contracting parties should clarify how the works are to be exhibited (e.g. whether barriers are provided, as well as maximum lighting, temperature, and humidity settings in the room). 

• Transport, Insurance, and liability: The contract should regulate who is responsible for transporting the works to the exhibition venue and back, who is liable for insuring the works during transport and throughout the exhibition, and who bears the costs for this.

• Opening hours and admission charges: The contract should regulate the exhibition’s opening hours and whether admission fees will be charged.

• Remuneration: Remuneration for the artist can be agreed for the exhibition of the works. The contracting parties may also agree on a sales commission for the exhibiting institution should the latter have brokered the sale of a work through the exhibition. 

• Other obligations: If the artist wishes to be named as the author of the artwork, the contract should stipulate how the author is to be named (e.g. by attaching a copyright symbol © and the name and year of the creation of the work). The contract should also stipulate whether the contracting parties are to take part in opening events or guided tours. 

• Cancellation and withdrawal: As in all contracts, reasons for cancellation and deadlines should be specified as well as whether the contract can be withdrawn from within a certain period.

When actors participate in another theatre performance or event for a limited period of time, they conclude a guest performance contract with the organiser. This regulates, for example, the obligatory participation in rehearsals, number of performances, remuneration, and reimbursement of travel expenses and accommodation costs.

The following points should be included in a guest performance contract:

• Performance venue and time: The contract must specify the performance venue and the period in which the artist will perform.

• Fee: The artist should note whether there are minimum standards regarding the fee amount in the respective country of performance.

• Technical requirements: If the artist requires specific technical support for the performance, this should be specified in the contract (e.g. a certain stage size, lighting and sound technology, special props). 

• Transport, accommodation, and catering: If the artist has to travel to a location far away from their habitual residence for the guest performance, arrangements should be made as to who will organise and pay for transport, accommodation, and meals.

• Rehearsal period: The contract should regulate the rehearsal period and the number of rehearsals the artist needs to attend before the performance.

• Advertising: If the appearance is to be advertised, the contracting parties should agree which advertising measures are to be taken, who is responsible for achieving them, and which contracting party will bear the costs.

• Liability: It makes sense to regulate who is liable for damaged or stolen equipment or injuries during the performance.

• Cancellation and withdrawal: As in all contracts, reasons for cancellation and deadlines should be specified as well as whether the contracting parties can withdraw from the contract within a certain period.

If an artist is commissioned for a specific artistic performance, this is a work/fee-based contract. In this case, they owe the contractor the production of a specific work of art or the provision of a specific artistic performance ("success"). The work/fee-based contract regulates remuneration, the schedule, the characteristics of the work, and the requirements for the artistic performance. 

The following points should be included in a contract for work/fee contract: 

• Type of service: As in any contract, the specific service the artist owes should be described. This could be, for example, a musical performance, a play, a performance, or the creation of a work of art.

• Time frame: The time frame in which a service owed is to be provided depends on the type of service. The contracting parties may agree, for example, that the artist shall provide the service on a certain day or within a certain period, that it shall be provided in instalments, or that a final delivery shall only be made on a certain date. 

• Fee/remuneration: The contract must specify the remuneration (referred to as remuneration for work or a fee) due to the artist and the payment modalities (e.g. whether remuneration is to be paid in instalments or only after the service has been provided in full). 

• Exploitation rights: The work/fee-based contract should stipulate whether the artist transfers certain exploitation rights to their artistic performance to the client (e.g. publication rights, reproduction rights, making it available to the public). See the chapter on copyright.

• Technical requirements: The contract should regulate the artist’s technical requirements for the performance. These may include, for example, a certain stage size, lighting and sound technology, or special props.

• Transport, accommodation, and catering: If the artist has to travel to a different location to provide the service, arrangements should be made as to who will organise and pay for transport, accommodation, and meals.

• Warranty and liability: It makes sense to regulate who is liable for damaged or stolen equipment or injuries during the performance, and how warranty claims will be dealt with in the event of a defective performance.

• Cancellation and withdrawal: As in all contracts, reasons for cancellation and deadlines should be specified as well as whether the contracting parties can withdraw from the contract within a certain period.

If artists or cultural workers are permanently employed by and work for a specific employer, they conclude an employment contract. The employee is integrated into the company and must follow the employer's instructions. The employment contract regulates working conditions, such as the employee's specific field of activity, working hours, and remuneration. See the chapter on labour law for details. 

Attention: A distinction must be made between an employment contract and a freelance service contract. Freelance employees are largely independent in their work performance, are not obliged to follow the employer's instructions, and can flexibly choose their working hours and location. See the chapter on labour law for details.

The minimum requirements for an employment contract are standardised in § 2 AVRAG and must always be included in an employment contract. Failure to do so may result in administrative penalties. An employment contract usually includes the following points:

• Place of work and working hours: The employer determines where and when the employee must perform their work. With regard to working hours, the statutory or collectively agreed limits on normal daily or weekly working hours must be observed. 

• Activity: The contract describes the role of the employee and the tasks to be performed as part of their employment. 

• Remuneration: Remuneration is usually regulated as a monthly gross salary. The contract may also provide for an additional overtime allowance or regulate commissions for services rendered. Depending on the country in which the employee works, a statutory or collectively agreed minimum wage may apply. 

• Holiday: The employer should determine how much holiday the employee receives and how this can be used up.

• Illness: Employment contracts usually contain provisions on how to deal with cases of employee illness. For example, they stipulate how and when the case of illness is to be reported.

• Termination: The notice periods and dates are generally regulated in the Austrian Labour Relations Act (AngG), the General Civil Code (ABGB), or the applicable collective agreement. However, the employee and employer may agree on different notice periods and dates as long as this is more favourable for the employee, or the notice periods are the same for both parties. 

• Special provisions: Depending on requirements, further provisions can also be made, such as an obligation to maintain confidentiality or the provision of work materials, (post-contractual) non-competition clauses, or provisions on service inventions and other intellectual property claims.

In the arts and culture sector, an agency agreement regulates the legal relationship between an artist and an agency that is to represent the artist's interests. It regulates, for example, how the agency arranges orders for the artist and how they are to be remunerated. The agency agreement is limited to a certain period and thus for an indefinite number of contracts between the artist and clients. 

An agency agreement usually includes the following points:

• Authorisation: The artist authorises the agency to act on their behalf and to conclude contracts. The authorisation can be restricted to certain types of actions. 

• Activity: The activities to be carried out by the agency are defined in the agreement. These include, for example, arranging engagements and orders, advising on legal and economic issues, and marketing measures. 

• Remuneration: The agency receives remuneration for its work; this can be agreed as a lump sum or as a recurring payment and depends on the revenue generated. 

• Contract duration: The agency can work for the artist within a certain period. Alternatively, the contract can also be concluded for an indefinite period.

• Liability: Errors can occur, and damage can be caused during the provision of services. The contract should stipulate who is liable for which damage and to what extent. 

• Cancellation and withdrawal: As in all contracts, reasons for cancellation and deadlines should be specified as well as whether the contracting parties can withdraw from the contract within a certain period.

• Other obligations of the contracting parties: Conditions relating to cooperation, information obligations, or confidentiality obligations are also usually agreed upon. The contracting parties may also agree that a contractual penalty is to be paid in the event of breaches of contract.

Managers support and advise artists in career-related matters. The management contract regulates their cooperation, the mutual rights and obligations of the contracting parties, the manager's power of representation, and their remuneration.

The contract usually includes the following points:

• Authorisation: The artist authorises the manager to act on their behalf and to conclude contracts.

• Activity: The manager carries out certain activities for the artist; these should be specified in the contract. They include, for example, arranging engagements and commissions, advising on legal and economic issues, image cultivation, and correspondence with sponsors and cultural institutions.

• Remuneration: The manager receives remuneration for their activities; this can be agreed as a lump sum, as a recurring payment, or can be dependent on the amount of income generated.

• Contract duration: The manager can either work for the artist within a certain period, or the contract can be concluded for an indefinite period. 

• Liability: Errors can occur, and damage can be caused during the provision of services. The contract should stipulate who is liable for which damage and to what extent. 

• Cancellation and withdrawal: As in all contracts, reasons for cancellation and deadlines should be specified as well as whether the contracting parties can withdraw from the contract within a certain period.

• Other obligations of the contracting parties: Depending on requirements, conditions regarding cooperation, information obligations, or confidentiality obligations can also be agreed upon. The contracting parties can also agree that a contractual penalty is to be paid in the event of breaches of contract.

When artists write literary works or compose pieces of music, they can conclude a publishing agreement with a publisher. This governs the legal relationship between the author of the work and the publisher and covers issues such as the transfer of usage rights, the author’s remuneration, and the production and marketing of the work. Under the publishing agreement, the author of a literary, audio, or visual work or their legal successor undertakes to make the work available to another party for their own reproduction and distribution, while the latter (the publisher) undertakes to reproduce the work and distribute these reproductions.

A publishing agreement typically regulates the following points:

• Subject matter of the contract: This specifies which specific work is to be the subject of the publishing agreement and which rights of use to this work the publisher receives (e.g. editing and reproduction of a manuscript).

• Obligations of the publisher: The publisher undertakes, for example, to produce, publish, and distribute the work, to produce advertising material, and to market the work. 

• Author's obligations: Publishing contracts are often concluded before a work is completed. In this case, the agreement typically stipulates when the author must complete the work and release it to the publisher, or by when the publisher must announce any requests for changes or additions.

• Fee: The author receives remuneration for the assignment of the rights of use. In addition, a share in the sales proceeds of the work can be agreed upon. For example, an advance and/or ongoing participation and payment to the author can also be agreed upon.

• Term of the contract: This specifies how long the publisher has the rights of use to the work.

• Termination and cancellation: The parties may stipulate the circumstances under which the right of cancellation exists (e.g. if the work is not delivered on time), or the modalities under which ordinary termination can take place. 

• Granting of rights: The contracting parties can agree for which duration and which region the exploitation rights are granted.

• Other provisions: It may also make sense to clarify liability issues or to agree provisions on confidentiality, contractual penalties, and dispute resolution and, in the case of literary works, provisions concerning future editions and the sale and marketing of the work.

A publishing agreement is usually an exclusive contract. This means that the author may not publish the work elsewhere or assign rights of use to it during the term of the contract. The contract is usually concluded "for a term of protection". This means that the rights of use are transferred until the copyright protection expires. In most countries, the term of protection expires 70 years after the death of the author. See the chapter on copyright for details. 

A merchandising agreement regulates the legal relationship between an artist and a company that wishes to produce and sell goods including images of artworks or the artist's brand (these goods are also known as "merch"). The contract regulates the conditions of use of the images or the brand as well as the artist’s remuneration.

The following contractual contents are usually regulated in a merchandising agreement:

• Object of the contract: This defines which specific products may be manufactured and sold.

• Rights of the artist: The specific rights of use that the artist transfers to the company for their images are regulated. As with any granting of rights, time and territorial restrictions should be taken into account. 

• Company obligations: These include the manufacturing and marketing of products, the creation of advertising materials, and the payment of licence fees.

• Remuneration: The artist receives remuneration for the granting of rights of use. This can, for example, be a one-off lump sum or a share of the sales proceeds.

• Duration of the contract: This can, for example, relate to a specific period, such as a series of events or the duration of an exhibition.

• Cancellation and withdrawal: The conditions for withdrawal and cancellation should be regulated. 

• Other provisions: Conditions relating to cooperation, information obligations, confidentiality obligations, or dispute resolution can also be agreed as required. The contracting parties may also agree that a contractual penalty is to be paid in the event of breaches of contract.

A merchandising agreement is usually an exclusive contract. This means that the artist may not have any products with their name, image, or other characteristics manufactured or sold by other companies during the term of the contract.

A sponsorship agreement is a contract between a sponsor and sponsored individuals, companies, or events. This contract specifies the ways in which the sponsor supports the contractual partner. These include, for example, the type and duration of the support services, advertising measures, and the consideration of the sponsored party.

The following points are usually regulated in a sponsorship agreement:

• Object of the sponsorship: This defines which person, which company, or which event is supported financially or materially by the sponsor. 

• Sponsor services: The sponsor undertakes to support a person, company, or an event by providing certain services. This can be purely financial support, the provision of products or services, or the implementation of advertising measures.

• Consideration from the sponsored party: In return, the company, person, or organiser of the event undertakes to name the sponsor in public, for example, to distribute their logo and advertising, or to provide advertising space. 

• Duration of the contract: Sponsorship is usually granted for a specific period (e.g. duration of an event). 

• Cancellation of the contract: The grounds and deadlines for cancellation should be specified as well as the conditions under which the contracting parties can terminate the contract prematurely.

• Liability and warranty: Errors and damage can occur during the provision of services. The contract should stipulate who is liable for which damage and to what extent.

• Other provisions: Conditions relating to cooperation, exclusivity, use of images, transfer of rights, information obligations, confidentiality obligations, or dispute resolution can also be agreed as required. The contracting parties may also agree that a contractual penalty is to be paid in the event of breaches of contract.

A sponsorship agreement can be of great benefit to both parties. The sponsor can improve their own image, increase awareness, and reach or expand their target group. At the same time, the sponsored party receives financial or material support for their own professional activities or the achievement of a project.

A cooperation agreement is concluded between two or more artists, cultural workers or companies who wish to create artworks or cooperate on cultural projects together. This contract regulates the conditions and manner of their collaboration, the transfer of rights of use, and the sharing of costs and profits. 

The following points are regulated in a cooperation agreement:

• Object of the agreement: The parties define the exact content and scope of their cooperation in a cooperation agreement. The contract makes it clear which objective is to be achieved as a result of cooperation and which services and resources are available for this purpose.

• Obligations of the parties involved: The agreement must clearly define which tasks the respective contracting parties assume, the extent to which they assume responsibility for the smooth implementation of the project within their scope of responsibility, and the extent to which they are obliged to cooperate.

• Allocation of costs and profits: This determines who bears which costs and how the profits or losses from the cooperation are shared.

• Duration of the contract: The cooperation can be agreed, for example, until the common goal is achieved or for a specific period. 

• Termination: Reasons and deadlines for cancellation should be defined and the conditions under which the cooperation’s premature termination is possible.

• Exploitation rights: When cooperating on artistic projects in particular, the contracting parties should clarify who receives exploitation rights to the joint projects and to what extent, and how the remuneration from the exploitation of rights is to be divided.

• Liability: Errors can occur, and damage can be caused during the provision of services. The contract should stipulate who is liable for which damage and to what extent.

• Other provisions: Depending on requirements, provisions on information obligations, confidentiality obligations, or dispute resolution can also be agreed upon. The contracting parties may also agree that a contractual penalty is to be paid in the event of breaches of contract.

A cooperation agreement is important in order to clearly regulate the cooperation between the parties involved and avoid potential conflicts.