Simple Consignment Agreement Template

A simple consignment agreement template is a legal document that outlines the terms and conditions between a consignor (the owner of goods) and a consignee (the seller of goods). This agreement typically covers aspects such as the consignment period, the commission rate, the responsibilities of each party, insurance coverage, and the return of unsold goods.

Key Elements of a Simple Consignment Agreement Template

To create a professional and effective simple consignment agreement template, consider the following essential elements:

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1. Parties Involved

Consignor: Clearly identify the consignor’s legal name, address, and contact information.

Consignee: Clearly identify the consignee’s legal name, address, and contact information.

2. Description of Goods

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Detailed Description: Provide a detailed description of the goods being consigned, including specific items, quantities, and any relevant specifications.

Valuation: Specify the agreed-upon value of the goods, which will be used for insurance purposes and to determine the commission rate.

3. Consignment Period

Start Date: Clearly state the start date of the consignment period.

End Date: Specify the end date of the consignment period or include a provision for automatic renewal.

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4. Commission Rate

Percentage: Clearly state the percentage of the sale price that the consignee will receive as a commission.

Payment Terms: Outline the payment terms, including the frequency of payments and any applicable fees or deductions.

5. Consignee’s Obligations

Marketing and Sales: Detail the consignee’s responsibilities for marketing and selling the consigned goods, including any specific marketing strategies or advertising requirements.

Care and Storage: Specify the consignee’s obligations for the care, storage, and security of the consigned goods.

Insurance: Indicate whether the consignee is required to maintain insurance coverage for the goods.

6. Consignor’s Obligations

Title and Ownership: Clearly state that the consignor retains ownership of the goods until they are sold.

Taxes and Fees: Specify who is responsible for paying sales taxes, import duties, and other applicable fees.

7. Return of Unsold Goods

Return Policy: Outline the procedures for returning unsold goods to the consignor, including any applicable costs or fees.

Timeline: Specify the timeframe within which the consignee must return unsold goods.

8. Termination

Termination Rights: Detail the circumstances under which either party may terminate the agreement, such as breach of contract or mutual agreement.

Notice Period: Specify the required notice period for termination.

9. Dispute Resolution

Mediation or Arbitration: Include a provision for resolving disputes through mediation or arbitration, rather than litigation.

10. Governing Law

Applicable Law: Specify the governing law that will apply to the agreement.

Design Elements for a Professional Template

To create a professional and trustworthy simple consignment agreement template, consider the following design elements:

Clear and Concise Language: Use clear and concise language to avoid confusion and legal jargon.

Professional Formatting: Use a professional font, such as Times New Roman or Arial, and a consistent font size and style.

Consistent Formatting: Use consistent formatting throughout the document, including headings, bullet points, and spacing.

White Space: Use white space to improve readability and create a clean and professional appearance.

Professional Logo: Include your company logo or a professional header to enhance the credibility of the document.

Legal Disclaimer: Include a legal disclaimer to protect your business from liability.

By incorporating these elements into your simple consignment agreement template, you can create a professional and effective document that protects the interests of both parties.