Intellectual Property & Safeguarding Art Works
Indian Contract Act 1872
To be valid, a contract of sale must be voluntarily given and not influenced by coercion, undue influence, fraud, misrepresentation, or mistake, according to the Indian Contract Act. As a result, art galleries will be held accountable for ensuring that the contract of sale of the artwork does not constitute fraud or misrepresentation. When a vendor misleads a buyer into believing that a forgery is real, the buyer has the right to cancel the contract. In India, artists such as Anjolie Ela Menon have filed lawsuits against people who sell fraudulent paintings.
Dealers and auction houses can be held liable under The Contract Act
Most art galleries declare in their contracts for sale, in order to exonerate themselves of any culpability, for example, for fakes, that they are merely agents for the artwork's sellers and that the actual transaction is a bipartite agreement between the buyer and the seller. The Contract Act provides the legislation governing principal-agent relationships. In general, an agent is not held liable for actions taken on behalf of the principal or ratified by the principle. This commitment, however, has evolved through time and will be established by the facts of the case, such as when the agent defrauds the parties.
Indian Penal Code
Under the rules of the Indian Penal Code, the act of falsifying or forging documents is criminally punishable in India. The form or substance of the document is unimportant for the laws to apply.
In India, one such instance was the Sheetal Mafatlal case, in which Mafatlal faced criminal charges for filing fraudulent claims involving fake paintings, and the court fined her 700,000 rupees for filing false complaints. The IPC also makes 'cheating' a criminal offence. If proven guilty, a dealer, art house, or vendor who offers fake artwork as real with the goal of defrauding the buyer faces a year in prison, a fine, or both.
The IPC also punishes dishonesty when it results in the deceived individual delivering the property to a third party. As a result, if an art house or a private person selling artwork was duped when they obtained the work and then sells it as a legitimate work of art, the party that duped the seller will face seven years in prison and a fine. Under the IPC, the art dealer, auction house, or gallery will also face criminal charges for conspiracy to sell fraudulent artwork and criminal breach of trust.
Consumer protection laws
In India, the Consumer Protection Act 2019 (COPRA) safeguards consumer rights. Art dealers, auction houses, art galleries, and internet art merchants will be held liable under the COPRA for selling defective objects. If they do not provide acceptable services, they may risk legal action.
Under the COPRA, a 'defect' is defined as any fault, imperfection, or shortcoming in the quality, quantity, potency, purity, or standard that is required to be maintained by or under any law currently in force or under any contract, express or implied, or as claimed by the trader in any manner whatsoever in relation to any goods or product, and the term 'defective' shall be construed accordingly.
As a result, a buyer who employs the services of an art dealer, art gallery, auction house, or online art platform to purchase art will be entitled to a remedy under the COPRA.
Warranties laws
The laws governing warranties are governed by the Sale of Goods Act of 1930 (SOGA). 'A warranty is a provision peripheral to the principal purpose of the contract, the failure of which gives rise to a claim for damages but not to the right to reject the products and treat the contract as repudiated,' according to the SOGA. Unless the buyer informs the seller of the specific purpose for which the products are required or the other conditions mentioned in Section 16 of the SOGA are met, there will be no implicit warranties applicable to the quality or fitness for purpose of the goods.
In the event of a breach of warranty, the buyer may, in addition to rejecting the goods set up the breach of warranty against the seller in diminution or extinction of the price or sue the seller for damages. It's worth noting that art law can vary significantly across different jurisdictions, so it's important to consult with a qualified attorney familiar with the relevant laws in your country or region.