When it comes to consigning items, having a clear and concise agreement in place is crucial for both the consignor and the consignee. A consignment agreement outlines the terms and conditions of the consignment, ensuring that both parties are aware of their responsibilities and obligations. In this article, we will provide a sample agreement for consignment that can be customized to fit specific needs.
Consignment Agreement
This agreement is made between [Consignor Name], located at [Address], hereinafter referred to as the «Consignor,» and [Consignee Name], located at [Address], hereinafter referred to as the «Consignee,» for the purpose of establishing the terms and conditions under which the Consignor shall deliver to the Consignee certain goods for sale on consignment.
1. Consignment of Goods
The Consignor hereby agrees to deliver to the Consignee the following items for sale on consignment:
[List of Items]
The Consignee shall have the right to display and sell the goods at their retail location or on their online platform.
2. Term of Consignment
The term of this agreement shall be [Number of Days/Months] from the date of signing this agreement, unless extended by mutual agreement of the parties.
3. Pricing and Payment
The parties shall agree on the selling price for each item, which shall be prominently displayed on the item. The Consignee agrees to make payment to the Consignor for the sold items within [Number of Days] after the end of each calendar month.
4. Accounting and Reports
The Consignee agrees to keep accurate records of all sales made during the consignment period and to provide the Consignor with a detailed report of all transactions on a monthly basis. The report shall include the total number of items sold, the selling price, and the amount due to the Consignor.
5. Condition of Goods
The Consignor represents and warrants that all goods delivered to the Consignee are in good condition and free from defects. The Consignee shall have the right to inspect the goods upon delivery and reject any items that do not meet the agreed-upon standards.
6. Termination
Either party may terminate this agreement by giving written notice to the other party [Number of Days] prior to the end of the term. Upon termination, any unsold items shall be returned to the Consignor within [Number of Days] of the termination date.
7. Governing Law
This agreement shall be governed by and construed in accordance with the laws of the state of [State].
8. Entire Agreement
This agreement constitutes the entire agreement between the parties and supersedes all prior agreements, understandings, and negotiations between the parties.
9. Amendments
No amendments to this agreement shall be effective unless in writing and signed by both parties.
IN WITNESS WHEREOF, the parties have executed this agreement as of the date first above written.
[Consignor Signature]
[Consignee Signature]
Having a comprehensive consignment agreement in place helps protect both the consignor and the consignee by outlining the terms and conditions of the consignment. This sample agreement can be customized to meet specific needs and ensures that both parties are aware of their responsibilities and obligations.