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Consignment Agreement


Secure your consignment deal with our legally binding Consignment Agreement. Entrust your goods to a Consignee for marketing and sales, while earning a fair Consignment Fee.

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Document Description

This Consignment Agreement is a legal document that outlines the terms and conditions between two parties, the Consignor and the Consignee. The Consignor, who wants to sell certain goods in a specific territory, enters into an agreement with the Consignee who has outlets in the same territory and is willing to market, display and sell the goods on behalf of the Consignor. The Consignment Fee for the Consignment Period in the Territory is also agreed upon.

The Agreement defines the terms used and their meaning, including Intellectual Property, Net Sales Price, Territory, Outlets, Business Day and Restricted Information. It also clarifies that any reference to "writing" or cognate expressions includes a reference to email or comparable means of communication. The headings in the Agreement are for convenience only and will not affect interpretation.

The marketing and display of the goods are the core elements of this Agreement. The Consignor consigns the goods to the Consignee to market, display, and sell on behalf of the Consignor in the Territory. The Consignee agrees to act in that capacity, subject to the terms and conditions of this Agreement. The Consignor shall not appoint any other person, firm, or company as the Consignor's Consignee for the promotion or sale of the goods in the Territory or for the solicitation of customers for the goods in the Territory, while the Agreement is in effect.

The Agreement also specifies that the Consignor may require the Consignee not to solicit orders for the goods from particular customers or prospective customers in the Territory if the Consignor has reasonable grounds to believe that such customers are not creditworthy or are involved in illegal activities against relevant sanction or money laundering or terrorist financing laws.

Marketing campaigns can include email, media, and flyers, and the Consignee agrees to allocate floor and wall space for the goods to be displayed at its outlets. The Consignor will determine the layout of the display, and the Consignee agrees to execute it.

Overall, this Consignment Agreement sets out the terms and conditions between the Consignor and the Consignee for the marketing, display, and sale of the Consignor's goods in a specific Territory. It provides a framework for both parties to work within and outlines their respective obligations and responsibilities.

How to Use the Document? 

This document outlines the terms of a consignment agreement entered into by two parties: the Consignor and the Consignee. The Consignor, whose principal place of business is at a particular address, wishes to sell certain goods within a specific territory, and the Consignee, who also has outlets in the same territory, is willing to market, display, and sell the goods on behalf of the Consignor for a fee.

The document is set out in a clear, numbered format. To use it, follow these steps:

1. Begin by reading the introductory section, which outlines the parties involved and the background to the agreement.

2. Familiarise yourself with the definitions of the terms used in the agreement, which are set out in section 1.

3. Review section 2, which outlines the Consignee's responsibilities, including marketing and displaying the goods, and the Consignor's rights, such as the ability to make sales to customers in the territory.

4. Take note of the marketing campaigns outlined in section 2.5, which include email, media, and flyers.

5. Understand the Consignee's responsibilities for allocating floor and wall space for the goods to be displayed, as outlined in section 2.6.

6. Ensure you are familiar with the fee structure, as set out in section 3.

7. Review the other provisions of the agreement, including termination and governing law, in sections 4 and 5.

8. Check the schedules attached to the agreement for details of the specific goods and outlets covered.

9. Seek legal advice if necessary before signing the agreement.

By following these steps, you can use this document as a clear and comprehensive template for a consignment agreement, helping to ensure a successful and mutually beneficial business arrangement.



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