How a confidential sale of a Rothko failed…big time.

What do you do when you don’t want the neighbors to know you’re selling grandma’s heirlooms because you need the money? Make sure you have a good confidentiality clause.

Certainly, one way to lessen the embarrassment factor from a subsequent public sale in the world of Big Art, would be to contract for a lengthy — but not indefinite — “no-resale period.” Let the waters calm, let the interested observers move-on and focus elsewhere. If the work is desirable enough, and a purchaser’s time horizon is long enough, such a limited limitation on sale might potentially work to both parties’ interests. By incorporating such a clause, it can save the seller embarrassment that, in some circles, comes with exposing a weak financial position.

A nice lesson in contract drafting, peppered with a bit of common sense.

Tags: Art Law, confidentiality agreements, drafting, resale, rothko, secondary market