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Clothing Consignment Contract Template for Singapore

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Clothing Consignment Contract

"I need a Clothing Consignment Contract for my vintage clothing store in Singapore, where I'll be receiving designer items from multiple suppliers, with a standard 40% commission rate and specific requirements for maintaining the condition of luxury goods."

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What is a Clothing Consignment Contract?

The Clothing Consignment Contract serves as a crucial legal framework for businesses engaged in consignment-based clothing retail in Singapore. This document is essential when a clothing owner wishes to place their merchandise with a retailer for sale without transferring ownership until the final sale occurs. The contract addresses key aspects including commission rates, payment schedules, merchandise handling, quality standards, and risk allocation, while ensuring compliance with Singapore's commercial laws and regulations. It's particularly relevant for fashion retailers, boutiques, and designers looking to expand their market presence without significant upfront inventory costs.

What sections should be included in a Clothing Consignment Contract?

1. Parties: Identification of consignor and consignee with full legal names and addresses

2. Background: Context of the consignment arrangement and business relationship

3. Definitions: Key terms used throughout the agreement

4. Consignment Terms: Core terms including duration, pricing, and commission structure

5. Responsibilities of Parties: Detailed obligations of both consignor and consignee

6. Payment Terms: Payment schedule, method, and commission calculations

7. Term and Termination: Duration of agreement and termination conditions

What sections are optional to include in a Clothing Consignment Contract?

1. Insurance: Insurance requirements and liability coverage for high-value items

2. Display Requirements: Specific requirements for merchandise display and presentation

3. Marketing Rights: Terms for using brand names and marketing materials for branded items

4. Returns Policy: Procedures and policies for handling returned or damaged items

What schedules should be included in a Clothing Consignment Contract?

1. Schedule A - Inventory List: Detailed list of consigned items with descriptions and prices

2. Schedule B - Commission Structure: Detailed breakdown of commission rates and calculations

3. Schedule C - Quality Standards: Specific quality requirements and inspection criteria

4. Appendix 1 - Operating Procedures: Detailed procedures for handling, storing, and selling consigned items

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

Relevant legal definitions




























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Industries

Sale of Goods Act (SOGA): Primary legislation governing sale of goods and transfer of ownership in Singapore. Establishes rights and obligations of parties, quality standards, and fitness for purpose requirements in sales transactions.

Singapore Contract Law: Common law principles governing contract formation, including essential elements of valid contracts, consideration, and contractual terms. Forms the fundamental legal basis for consignment agreements.

Consumer Protection (Fair Trading) Act: Legislation protecting consumer interests and ensuring fair trading practices in retail sales. Particularly relevant if consignment goods are sold to end consumers.

Goods and Services Tax Act: Tax legislation governing GST obligations for consignment sales, including record-keeping requirements and tax reporting obligations for consignment transactions.

Personal Data Protection Act (PDPA): Legislation governing the collection, use, and disclosure of personal data. Relevant for handling personal information of consignors and consignees in the consignment arrangement.

Consumer Protection (Trade Descriptions and Safety Requirements) Act: Legislation governing product labeling, safety standards for clothing items, and requirements for accurate description of goods in trade.

Shop Licensing Requirements: Local regulatory requirements for operating retail premises and storing consignment goods, including necessary permits and licenses.

Insurance Regulations: Requirements and considerations for insurance coverage of consignment goods, including liability and property damage protection.

Payment Services Act: Regulations governing electronic payment services and transactions if digital payments are involved in the consignment arrangement.

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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