Consignment agreement
This consignment agreement is made between ____________________, “the Consignor”, and ____________________, “the Consignee”.
1. Goods
The Consignor places the following goods with the Consignee, on consignment, for sale to the public at the Consignee's premises:
- ____________________
- ____________________
- ____________________
2. Ownership
The goods remain the Consignor's property until they are sold to a customer. The Consignee may not sell them on to another business, pledge them, or remove them from the premises for any other purpose.
3. Price
The Consignee will sell each item at the retail price agreed in the list above and keep 25% of each sale as its commission. For every item sold, the Consignee pays the Consignor the remaining 75%.
Any change of price is agreed in writing, a message being enough, before it applies.
4. Counts and settlement
The parties count the stock on hand together every two weeks, at the Consignor's visit. What sold is what was there at the end of the previous visit minus what is there at this count, and only that is settled. Goods the Consignor delivers at the same visit are settled once a later count shows how many of them sold.
Each delivery and each count is recorded on a delivery note or receipt signed by whoever receives it.
5. Payment
The Consignee pays for what sold at the same visit as the count, by cash or bank transfer. Transfers go to the account the Consignor gives in writing.
6. Damaged or expired goods
Goods damaged through no fault of the Consignee, or that reach their use-by or best-before date, are replaced by the Consignor free of charge, item for item, at the next visit. Replacements are not charged and do not count as sales.
The Consignee takes expired or damaged goods off sale and keeps them for the Consignor to collect.
7. Care and loss
The Consignee displays the goods where customers can see them and keeps them in the conditions the Consignor specifies. While the goods are on its premises, the Consignee is responsible for theft, loss, or damage caused by it or its staff, and pays for such goods as if sold.
8. Term and termination
This agreement runs for 6 months from signature and renews for the same period unless either party says otherwise.
Either party may end it at any time by giving the other 15 days' notice in writing.
9. Return of unsold goods
When the agreement ends, the parties make a final count. The Consignee pays for what sold under the payment clause and returns unsold goods within 7 days; the Consignor collects them from the premises.
10. Governing law
This agreement is governed by the laws of ____________________.
Signed in two copies at ____________________ on ____________________.
Consignor
Name and signature
Consignee
Name and signature