Document background
The Basic Consignment Agreement is a fundamental commercial document used when a business wants to sell products through a third party without transferring ownership until the final sale. This arrangement is particularly common in retail, wholesale, and specialty markets where sellers want to minimize inventory risk while suppliers want to expand their distribution channels. The agreement, structured under Belgian law, typically includes detailed provisions for inventory management, commission structures, reporting requirements, and risk allocation. The Basic Consignment Agreement is essential for businesses operating in Belgium, as it must comply with specific Belgian commercial law requirements, VAT regulations, and commercial agency provisions. This document serves as a comprehensive framework for establishing and managing consignment relationships while protecting both parties' interests under Belgian jurisdiction.
