The Consignment Agreement Form is essential for businesses operating under Australian jurisdiction who wish to establish a consignment sales arrangement. This document is particularly relevant when a product owner (consignor) wants to place their goods with a retailer or seller (consignee) without transferring ownership until the final sale. The agreement comprehensively covers critical aspects such as commission rates, payment terms, product handling, risk allocation, and reporting requirements. It ensures compliance with Australian legal requirements, including the Competition and Consumer Act 2010, state-specific Sale of Goods Acts, and the Personal Property Securities Act 2009. This form of agreement is commonly used in retail, art galleries, luxury goods, and various other sectors where inventory risk management and flexible selling arrangements are desired.
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1. Parties: Identifies and provides full legal details of the consignor and consignee
2. Background: Explains the context of the agreement and the parties' intention to enter into a consignment arrangement
3. Definitions: Defines key terms used throughout the agreement
4. Appointment and Scope: Establishes the consignment relationship and defines its scope
5. Ownership of Goods: Clearly states that ownership remains with the consignor until sale
6. Delivery and Storage: Details the process for delivery, storage requirements, and handling of consigned goods
7. Sales and Pricing: Establishes pricing mechanisms and sales procedures
8. Commission Structure: Details the commission rates and calculation method
9. Payment Terms: Specifies payment procedures, timing, and methods
10. Responsibilities of Consignee: Lists all obligations of the consignee including storage, sales, reporting
11. Responsibilities of Consignor: Details obligations of the consignor including supply and quality of goods
12. Records and Reporting: Specifies required records, reports, and accounting procedures
13. Insurance and Risk: Addresses insurance requirements and allocation of risk
14. Term and Termination: Specifies duration, renewal, and termination conditions
15. General Provisions: Standard legal provisions including governing law, notices, and amendments
1. Marketing and Display: Details requirements for product display and marketing - include when specific display requirements are crucial
2. Returns and Recalls: Procedures for handling returns and product recalls - include for consumer goods or regulated products
3. Exclusivity: Terms regarding territorial or product exclusivity - include when exclusive rights are granted
4. Performance Targets: Minimum sales targets or performance metrics - include when specific performance levels are required
5. Security Interest: PPSA registration and security provisions - include for high-value goods
6. Intellectual Property: IP usage and protection - include when branding or patents are involved
7. Staff Training: Requirements for staff training on products - include for technical or specialized products
8. Confidentiality: Detailed confidentiality provisions - include when sensitive information is shared
9. Online Sales: Terms for online or e-commerce sales - include when online sales are permitted
1. Schedule 1 - Product List: Detailed list of consigned products including descriptions and SKUs
2. Schedule 2 - Commission Rates: Detailed breakdown of commission rates for different product categories
3. Schedule 3 - Operating Procedures: Detailed procedures for handling, storing, and selling consigned goods
4. Schedule 4 - Reporting Templates: Templates for required sales reports and inventory records
5. Schedule 5 - Service Level Requirements: Specific performance metrics and service standards
6. Appendix A - Storage Requirements: Detailed specifications for product storage and handling
7. Appendix B - Insurance Requirements: Specific insurance coverage requirements and limits
Authors
Relevant legal definitions
Clauses
Relevant Industries
Retail
Art and Galleries
Fashion and Apparel
Luxury Goods
Electronics
Automotive Parts
Furniture and Home Decor
Sporting Goods
Books and Publications
Jewelry
Agricultural Products
Industrial Equipment
Antiques and Collectibles
Designer Merchandise
Handicrafts
Relevant Teams
Legal
Commercial
Operations
Finance
Procurement
Sales
Compliance
Supply Chain
Retail Operations
Business Development
Contract Administration
Relevant Roles
Retail Operations Manager
Commercial Director
Business Development Manager
Store Manager
Gallery Owner
Procurement Manager
Legal Counsel
Contract Administrator
Sales Director
Inventory Manager
Finance Manager
Compliance Officer
Retail Buyer
Operations Director
Supply Chain Manager
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