Model consignment agreement
Under a consignment agreement the supplier will retain ownership of the goods. This can be the producer of the goods, such as an artist, a furniture maker or an importer (the Consigner). The vendor (the Consignee) has a shop, a warehouse or a gallery where the goods are sold to the customer. This consignment agreement sets out the terms for the distribution of the proceeds when sold, the method of payment and the distribution of the risks.
The purpose of this agreement is to sell goods, as opposed to the custody of goods, which entails temporary storage.
How to fill in the agreement
Please make a description of the products and determine the fees etc.
Summary
Includes provisions about:
- Product description;
- Exclusivity;
- Insurance;
- Final account;
- Duration of the agreement;
- Listing fees.
Context
This document can be used in the following situation:
Consignment is an arrangement to manage the financial risks for the distributive trade (shops, galleries etc.) By not purchasing the goods but by receiving the goods on consignment will reduce the burden on the capital. Furthermore, any unsold goods will return to the supplier. Professionals in the creative industry, such as painters or furniture makers, often rely on a consignment sales model. A consignment agreement can also be used for other goods.
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