The permanent loan is a very interesting topic in many ways. Who owns the works of art in museums? What are the obligations associated with it? Lawyer Korina Perry provides information in the art law blog.
Why a permanent loan?
“The art is long! And our life is short!” This saying of Goethe’s created character in the world-famous play Faust aptly describes why works of art are permanently lent to a third party, be it a museum or a gallery.
In order to clarify the interests of a permanent loan in contrast to the short-term loan of a work of art, one has to deal with the participants.
Works of art have their price. Most museums use state funding. There is often a lack of collections or works of art to display changing exhibitions. The purchase or purchase of collections or individual works of art can be a financial problem.
Art wants to be seen; she wants you to deal with it and forms the basis for discussion. The best way to do this is to create a space in which the discussion can unfold publicly.
What is a permanent loan in legal terms?
The permanent loan is a legal term, but it is not found anywhere in the law. It is used today to make it clear that the lender leaves the time of return open when the artwork is handed over to a third party. The lender, however, always remains the owner of the artwork and can request it back from the hirer.
What are the special features of a permanent loan?
The basis of the permanent loan is a loan contract.
When the term long-term loan is legally fulfilled has not yet been precisely defined. It is generally recognized that this is a long-term loan, the end of which is deliberately kept open between the parties. In principle, the distributor can reclaim the artwork at any time.
As with all contracts, the so-called principle of private autonomy also applies to long-term loans. After that, everything can be agreed, unless the law prohibits it. Taking into account the interests of those involved in long-term loans is therefore always a question of the individual case and requires careful and deliberate design of the underlying contracts, in the best case by a specialist.
If you have any questions about the subject of art law, please contact us. The Perry & Partner law firm will be happy to help you!