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A consignment agreement form is a legal document that outlines the terms and conditions of a consignment agreement. It specifies the responsibilities of both the consignor and the consignee and sets out the terms of the sale of the goods. The form typically includes details such as the consignment period, the percentage of the sale price that the consignee will receive as commission, and how the goods will be displayed and marketed.
You can find a standard template for a consignment agreement here. While we provide examples here, it’s always best practice to get your own legal advice from counsel.
Why Your Business Needs a Consignment Agreement Form
1. Protection of Interests
The consignment agreement protects the interests of both parties involved in the transaction. It outlines the responsibilities of the consignor and consignee and sets out the terms of the sale of the goods, which ensures that both parties are aware of their obligations and that the transaction is fair and equitable.
2. Clear Terms and Conditions
Having a consignment agreement in place ensures that the terms and conditions of the transaction are clear and well-defined. This reduces the risk of confusion or misunderstanding between the parties and can help to avoid disputes or conflicts.
3. Legal Compliance
A consignment agreement ensures that your consignment business is compliant with legal requirements. It ensures that the transaction is conducted in accordance with relevant laws and regulations, such as those related to consumer protection and sales tax.
4. Protection of Goods
The consignment agreement includes details on how the goods will be displayed and marketed. This ensures that the goods are presented in a way that is likely to result in a sale and that they are protected from damage or theft.
5. Commission Structure
The consignment agreement specifies the consignment split, which is the percentage of the sale price that the consignor receives upon sale, and any discounting that will take place. This helps to ensure that the consignee is fairly compensated for their efforts and that the consignor receives a fair price for their goods.
If you run a consignment business or are considering entering into a consignment agreement, it's important to have a comprehensive consignment agreement form in place to protect your interests. Check out our blog for additional resources, or set up a call with one of our sales experts to boost your business today.
Looking to create your own consignment agreement form? Get started with these tips on what to include in your consignment agreement form.
