This Glossary is largely based on the EENC Toolkit in Practical Ways to Bring Down the Cost of Lending and Borrowing Works of Art Between Nations of the EU and Dümke and Matassa, Valuation of Works of Art for Lending and Borrowing Purposes.

Agreed value A price agreed between both parties in the transaction, e.g. buyer and seller, lender and borrower.

Artist's resale rights The rights of the artist for a percentage of the sales price of their work when sold on the secondary market. Rights do not apply to first sale or to private sales. The right generally lasts for 70 years after the artist's death. It applies to sales over €1000 and there is a sliding scale depending on value.

Attribution The name of the artist, maker, manufacturer or workshop assigned to the item or a recognition that the object is by that artist or maker.

Bailment The law of Bailment refers to the transfer of physical property from one person the ‘Bailor’ to another the ‘Bailee’ where the Bailor retains ownership and the Bailee has custody. Certain rights, such as a duty of care, are attached to the transaction.

Broker An insurance broker acts on behalf of a client seeking insurance, buys insurance for them and is the intermediary with the underwriter who calculates and bears the risk.

Business interruption Insurance cover for continuing to manage your business after an emergency such as a fire or flood. Provision may be required for temporary premises, staff costs, salvage treatment for objects, etc.

Buyer's premium Commission paid by the buyer to the auction house. It can range from 10% to 25% of the sales price.

Buyer's price Actual price of an item purchased at an auction. Also known as ‘hammer price’. This does not include additional costs such as commission, buyer's premium, administrative costs and VAT.

Celebrity contagion An item associated with a famous person. This can significantly raise the market value and can have a huge impact on the purchaser's willingness to purchase.

Collections impact The effect of a new acquisition on the existing collection which is assessed before proceeding. A Collections Impact Statement could be drawn up to look at costs, resources, usage, etc.