The Consignment Stock Agreement is essential for businesses seeking to establish a consignment arrangement where goods are stored at a consignee's premises while ownership remains with the consignor until sale. This arrangement is particularly valuable for businesses looking to expand market presence without requiring immediate payment for inventory, or for those testing new markets with minimal risk. The agreement, compliant with Austrian law, specifically addresses key aspects such as delivery terms, storage conditions, inventory management, risk allocation, pricing mechanisms, and reporting requirements. It's commonly used in various commercial contexts, from retail to industrial applications, and must comply with Austrian Commercial Code (UGB) and Civil Code (ABGB) requirements. The document provides comprehensive coverage of operational procedures, liability allocation, and termination provisions, ensuring clear understanding of parties' rights and obligations under Austrian jurisdiction.
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1. Parties: Identification of the consignor and consignee, including full legal names, registration numbers, and addresses
2. Background: Context of the agreement, business relationship, and general purpose of the consignment arrangement
3. Definitions: Definitions of key terms used throughout the agreement, including 'Consignment Stock', 'Products', 'Premises', etc.
4. Appointment and Scope: Establishment of the consignment relationship and its territorial scope
5. Delivery and Storage: Terms for delivery of goods to consignment location and storage requirements
6. Title and Risk: Provisions clarifying retention of title by consignor and allocation of risk for the goods
7. Stock Management: Requirements for stock keeping, inventory management, and reporting
8. Pricing and Payment: Terms for pricing of goods, payment procedures, and settlement periods
9. Sales Reporting: Obligations for reporting sales, stock levels, and related information
10. Insurance and Liability: Insurance requirements and allocation of liability for loss or damage
11. Term and Termination: Duration of agreement and grounds for termination
12. Return of Goods: Procedures for returning unsold goods or stock rotation
13. Governing Law and Jurisdiction: Specification of Austrian law as governing law and jurisdiction for disputes
1. Quality Control: Specific requirements for maintaining product quality during storage, used when dealing with sensitive or perishable goods
2. Minimum Stock Levels: Requirements for maintaining minimum stock levels, relevant for agreements where consistent availability is crucial
3. Marketing and Promotion: Terms regarding marketing responsibilities and costs, important when consignee is expected to actively promote products
4. Electronic Data Exchange: Specifications for electronic inventory management and reporting systems, relevant for digitalized operations
5. Exclusivity: Terms granting exclusive rights or territories, used when exclusive arrangements are part of the business model
6. Compliance Requirements: Specific regulatory compliance obligations, particularly relevant for regulated products
7. After-Sales Service: Terms regarding warranty handling and customer service, important for technical or complex products
8. Staff Training: Requirements for staff training on product handling, relevant for technical or specialized products
1. Schedule 1 - Product List: Detailed list of products covered by the agreement, including specifications and pricing
2. Schedule 2 - Storage Requirements: Specific requirements for storage conditions, including temperature, humidity, and security measures
3. Schedule 3 - Reporting Templates: Standard forms and templates for inventory and sales reporting
4. Schedule 4 - Service Level Agreement: Detailed operational procedures and performance metrics
5. Schedule 5 - Insurance Requirements: Detailed insurance requirements and coverage specifications
6. Schedule 6 - Return Procedures: Detailed procedures for handling returns and stock rotation
7. Appendix A - Premises Description: Description and details of storage locations
8. Appendix B - Authorized Personnel: List of authorized personnel for handling consignment stock
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Retail
Automotive
Electronics
Fashion and Apparel
Industrial Equipment
Medical Devices
Pharmaceuticals
Consumer Goods
Luxury Goods
Sporting Goods
Construction Materials
Agricultural Products
Chemical Products
Relevant Teams
Legal
Supply Chain
Procurement
Sales
Operations
Finance
Risk Management
Logistics
Warehouse Operations
Commercial Operations
Business Development
Relevant Roles
Supply Chain Manager
Commercial Director
Procurement Manager
Sales Director
Operations Manager
Inventory Manager
Legal Counsel
Contract Manager
Business Development Manager
Logistics Manager
Warehouse Manager
Finance Director
Risk Manager
Commercial Lawyer
Retail Operations Manager
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