A Consignment Agreement is concluded between two parties, the Consignor and the Consignee. There, parties agree to sell the goods on behalf of the other party (the Consignor).
A Consignment Agreement is concluded between two parties, the Consignor and the Consignee. There, parties agree to sell the goods on behalf of the other party (the Consignor). A Consignor is a person who owns the assets. Usually, it is an individual who is looking for ways to sell their goods. And the Consignee is the person authorized to sell the products on behalf of the Consignor. Usually, it is a business entity, like a store.
Any type of consignment sale between two parties can be used with Consignment Agreements. It can be either a product line or just one product. In the Consignment Agreement, the consignee agrees to sell the product under certain conditions, and the consignor grants the recipient the right to sell under the same circumstances. These contracts are particularly beneficial to the consignor as they do not have to do the sales themselves.
In the document, both parties set their responsibilities and rights to the relationship between them.
The parties must include a description of the product being sold, pricing, and tax division. We also recommend that you include what the parties will be liable for in the event of a failure.
You fill out a form. The document is created before your eyes as you respond to the questions.
At the end, you receive it in Word and PDF formats. You can modify it and reuse it.
Either the Consignor or the Consignee can fill out the document.
In the document, the filling party will enter whether the parties are individuals or businesses, as well as their addresses and other contact information. The document must also include information about the features of the agreement between the parties, such as the payment structure and the consequences of inactivity.
A completed document should be printed and signed by both parties. We recommend keeping copies in case any future disputes arise.
In the US, Article 9 of the Uniform Commercial Code covers Consignment Agreements.