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Equipment Consignment Agreement
"I need an Equipment Consignment Agreement for my medical imaging equipment business where I (as manufacturer) will place diagnostic machines with three major hospitals in Manila, with the agreement starting January 2025 and including provisions for maintenance services and staff training."
1. Parties: Identification of the Consignor (equipment owner) and Consignee (seller/distributor), including complete legal names and addresses
2. Background: Context of the agreement, brief description of the parties' businesses, and general purpose of the consignment arrangement
3. Definitions: Definitions of key terms used throughout the agreement, including 'Equipment', 'Consignment Period', 'Sales Proceeds', etc.
4. Appointment and Scope: Terms of the consignee's appointment, territory coverage, and exclusivity status
5. Delivery and Acceptance: Procedures for equipment delivery, inspection, and acceptance criteria
6. Title and Risk: Clarification that title remains with consignor until sale, and allocation of risk during consignment
7. Consignee Obligations: Responsibilities including storage, maintenance, insurance, and sales efforts
8. Pricing and Commission: Pricing mechanisms, commission structure, and payment terms
9. Reporting and Accounting: Requirements for sales reporting, inventory tracking, and financial accounting
10. Term and Termination: Duration of agreement, renewal terms, and termination conditions
11. Return of Equipment: Procedures for returning unsold equipment upon termination or expiry
12. General Provisions: Standard clauses including governing law, dispute resolution, and notices
1. Marketing and Promotion: Specific requirements for marketing the equipment, used when consignee has marketing responsibilities
2. Training Requirements: Training obligations for technical equipment, included when equipment requires specialized knowledge
3. After-Sales Service: Service and warranty handling procedures, relevant for technical or complex equipment
4. Performance Targets: Sales targets and performance metrics, included when specific performance levels are required
5. Intellectual Property: IP rights and usage terms, necessary when branded equipment or proprietary technology is involved
6. Data Protection: Data handling requirements, included when customer data collection is involved
7. Sub-Consignment Rights: Terms for allowing sub-consignment, used in multi-tier distribution arrangements
8. Export Controls: Export compliance requirements, necessary for international equipment or restricted items
1. Schedule A - Equipment List: Detailed list of equipment with specifications, model numbers, and quantities
2. Schedule B - Pricing Structure: Detailed pricing guidelines, commission rates, and payment calculations
3. Schedule C - Territory Definition: Detailed description of authorized sales territory with any exclusions
4. Schedule D - Operating Procedures: Detailed procedures for handling, storage, and maintenance of equipment
5. Schedule E - Reporting Templates: Standard forms for inventory reports, sales reports, and financial statements
6. Schedule F - Service Level Requirements: Specific performance metrics and service standards
7. Appendix 1 - Insurance Requirements: Detailed insurance coverage requirements and minimum limits
8. Appendix 2 - Return Procedures: Detailed procedures for equipment returns and condition assessment
Authors
Manufacturing
Industrial Equipment
Construction
Healthcare Equipment
Agricultural Machinery
Technology Hardware
Retail
Heavy Machinery
Medical Devices
Office Equipment
Telecommunications Equipment
Scientific Instruments
Automotive
Legal
Sales
Operations
Procurement
Finance
Supply Chain
Business Development
Compliance
Distribution
Commercial
Risk Management
Inventory Management
Commercial Director
Sales Manager
Operations Manager
Procurement Manager
Legal Counsel
Business Development Manager
Supply Chain Manager
Distribution Manager
Equipment Manager
Contract Administrator
Finance Director
Compliance Officer
Regional Sales Director
Inventory Manager
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