Document background
The Simple Consignment Contract is a fundamental commercial agreement used in South African business transactions where one party wishes to sell goods through another party without transferring ownership until the final sale. This document type is particularly relevant in retail, wholesale, and specialty markets where merchants want to minimize inventory risk while suppliers seek expanded distribution channels. The contract addresses key aspects required under South African law, including VAT implications, consumer protection requirements, and risk allocation. It provides a framework for establishing commission rates, payment terms, reporting requirements, and responsibilities for both parties. The Simple Consignment Contract is especially useful for businesses entering new markets or testing product demand, as it allows for flexible inventory management while maintaining clear legal protection for both consignor and consignee.
