Consignment Agreement

A consignment agreement is a legal contract between a consignor and a consignee in which the consignor agrees to sell certain goods in a specific territory, and the consignee agrees to display, market, and sell the goods on behalf of the consignor. This document is a template of a consignment agreement, and it can be used by businesses looking to enter into a consignment arrangement. The agreement includes the interpretation, marketing and display of goods, the terms of sale, consignment fees, and other important clauses.

The agreement defines the terms used in the document, including Business Day, Force Majeure, Intellectual Property, Net Sales Price, Goods, Outlets, Quarter, Restricted Information, and Territory. The Goods listed in Schedule 1 are the products that will be marketed and sold under the agreement, and the Outlets listed in Schedule 2 are the consignee's stores where the products will be displayed and sold.

The agreement states that the consignee will market and display the Goods in the Territory, and the consignor will be entitled to make sales of the Goods to customers in the Territory, whether or not they have been introduced by the consignee. The consignor may also require the consignee not to solicit orders from specific customers if there are reasonable grounds to believe that they are not creditworthy or are involved in illegal activities.

Marketing campaigns may include email, media, and flyers. The consignee agrees to allocate floor and wall space for the Goods to be displayed at its Outlets, and the consignor determines the layout of the display. The consignee agrees to accept delivery and unpack Goods or props related to the display of Goods from time to time, prepare Goods for display, and place Goods on display at its Outlets as directed by the consignor.

The agreement specifies the terms of sale, including the consignment fee, the duration of the agreement, and the payment of the Net Sales Price to the consignor. The agreement also includes clauses related to title and risk, insurance, warranties, intellectual property, confidentiality, and termination.

Overall, this template of a consignment agreement is designed to protect the interests of both the consignor and the consignee, and it provides a framework for a mutually beneficial consignment arrangement.

How to use this document?

This document is a consignment agreement between the Consignor and the Consignee. It outlines the terms and conditions for marketing, displaying, and selling Goods on behalf of the Consignor by the Consignee in the agreed Territory. Here are the steps to use this document:

1. Introduction: The document begins by stating the parties involved and their principal place of business. It also mentions that the Consignor wants to sell certain Goods in the Territory, and the Consignee is willing to market, display, and sell them.

2. Interpretation: The interpretation section defines important terms used in the agreement, including Business Day, Force Majeure, Intellectual Property, Net Sales Price, Goods, Outlets, Quarter, and Restricted Information.

3. Marketing and Display: This section covers the details of marketing and displaying the Goods. The Consignor consigns the Goods to the Consignee to market and display on behalf of the Consignor in the Territory, subject to the terms and conditions of the agreement. The Consignee agrees to allocate floor and wall space for the Goods to be displayed at its Outlets as directed by the Consignor. Marketing campaigns include email, media, and flyers.

4. Sales: This section states that the Consignee is authorised to sell the Goods in the Territory during the Consignment Period. The Consignor is entitled to make sales of the Goods to customers in the Territory whether or not they have been introduced to the Consignor by the Consignee.

5. Consignment Period: The Consignment Period shall be for an initial period of [INITIAL_PERIOD] months, commencing on the date of this Agreement, and thereafter may be extended by mutual agreement of the parties.

6. Consideration: This section describes the Consignment Fee payable by the Consignee to the Consignor for the Consignment Period.

7. Records and Reports: The Consignee shall maintain complete and accurate records of all Goods received, held, and sold during the Consignment Period. The Consignor shall have the right to examine and audit these records.

8. Termination: This section outlines the circumstances in which the agreement may be terminated by either party.

9. Liability: This section describes the liability of each party under the agreement.

10. Confidentiality: The Consignee shall keep confidential and not disclose to any third party any Restricted Information.

11. Notices: Any notices required to be given under the agreement shall be in writing and delivered by hand or sent by registered or certified mail or email.

12. Governing Law: This agreement shall be governed by and construed in accordance with the laws of [GOVERNING LAW].

In conclusion, this document is a comprehensive agreement that outlines the terms and conditions for marketing, displaying, and selling Goods on behalf of the Consignor by the Consignee in the agreed Territory. It is essential for both parties to read and understand the agreement before signing it.