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Consignment Agreement Form for Australia

Consignment Agreement Form Template for Australia

An Australian Consignment Agreement Form is a legally binding document that establishes the terms and conditions under which one party (the consignor) provides goods to another party (the consignee) for sale while retaining ownership until the goods are sold. This agreement, governed by Australian law including the Competition and Consumer Act 2010 and relevant state legislation, details the commission structure, handling of goods, payment terms, and responsibilities of both parties. It includes specific provisions for compliance with Australian consumer protection laws, GST requirements, and security interests under the Personal Property Securities Act 2009.

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What is a Consignment Agreement Form?

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.

What sections should be included in a Consignment Agreement Form?

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

What sections are optional to include in a Consignment Agreement Form?

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

What schedules should be included in a Consignment Agreement Form?

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

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Australia

Publisher

Ƶ

Document Type

Agreement Contract

Cost

Free to use
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

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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