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Consignment Agreement Form for Canada

Consignment Agreement Form Template for Canada

A Canadian Consignment Agreement Form is a legally binding document that establishes the terms and conditions under which one party (the consignor) entrusts their goods to another party (the consignee) for the purpose of sale. This agreement, governed by Canadian federal and provincial laws, specifically outlines the consignment relationship, including commission structures, payment terms, risk allocation, and responsibilities of both parties. It addresses key aspects such as inventory management, pricing policies, reporting requirements, and the return of unsold goods, while ensuring compliance with relevant Canadian commercial and consumer protection legislation.

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What is a Consignment Agreement Form?

The Consignment Agreement Form is a crucial document used in Canadian business operations where one party wishes to sell goods through another party without transferring ownership until the final sale. This arrangement is particularly common in retail, art galleries, fashion, and specialty stores. The agreement serves to protect both parties' interests by clearly defining the consignment relationship, payment terms, and operational procedures. The document must comply with Canadian federal and provincial legislation, including the Personal Property Security Act (PPSA), provincial Sale of Goods Acts, and relevant consumer protection laws. Typically, the Consignment Agreement Form includes detailed provisions for inventory management, commission structures, reporting requirements, risk allocation, and the handling of unsold goods. This type of agreement is especially valuable for businesses looking to expand their product offerings without significant inventory investment and for suppliers seeking to reach new markets through established retail channels.

What sections should be included in a Consignment Agreement Form?

1. Parties: Identifies and provides full legal details of the consignor and consignee

2. Background: Explains the context and purpose of the consignment arrangement

3. Definitions: Defines key terms used throughout the agreement

4. Consignment Terms: Outlines the basic terms of the consignment arrangement, including duration and territory

5. Delivery and Acceptance: Details the process for delivering goods and accepting them into consignment

6. Pricing and Commission: Specifies the pricing structure, commission rates, and payment terms

7. Title and Risk: Clarifies that title remains with consignor while goods are in consignee's possession

8. Responsibilities of Consignee: Details the consignee's obligations regarding storage, display, and sale of goods

9. Responsibilities of Consignor: Outlines the consignor's obligations regarding product quality, delivery, and support

10. Reporting and Accounting: Specifies requirements for sales reporting, inventory tracking, and financial accounting

11. Payment Terms: Details the process and timing of payments between parties

12. Term and Termination: Specifies the duration of the agreement and conditions for termination

13. Return of Goods: Procedures for returning unsold goods to the consignor

14. General Provisions: Standard legal provisions including governing law, notices, and amendments

What sections are optional to include in a Consignment Agreement Form?

1. Insurance Requirements: Detailed insurance obligations - include when high-value goods are involved

2. Marketing and Promotion: Specific requirements for promoting the consigned goods - include for retail arrangements

3. Exclusivity: Terms of exclusive dealing arrangements - include when exclusivity is part of the business arrangement

4. Minimum Performance Requirements: Sales targets or minimum performance standards - include for performance-based arrangements

5. Online Sales: Provisions for online sale of consigned goods - include for e-commerce arrangements

6. Quality Control: Specific quality maintenance requirements - include for perishable or sensitive goods

7. Intellectual Property: IP rights and usage terms - include when branded or protected goods are involved

8. Security Interest: PPSA registration and security requirements - include for high-value consignments

What schedules should be included in a Consignment Agreement Form?

1. Schedule A - Consigned Goods: Detailed list of goods placed on consignment, including descriptions and quantities

2. Schedule B - Pricing Schedule: Detailed pricing structure, including retail prices and commission rates

3. Schedule C - Operating Procedures: Specific procedures for handling, storing, and selling consigned goods

4. Schedule D - Reporting Templates: Standard forms for inventory and sales reporting

5. Schedule E - Territory Definition: Detailed description of the geographic territory covered by the agreement

6. Appendix 1 - Insurance Requirements: Detailed insurance specifications and coverage requirements

7. Appendix 2 - Quality Standards: Specific quality standards and maintenance requirements for the goods

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Canada

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions




































Clauses




































Relevant Industries

Retail

Art and Collectibles

Fashion and Apparel

Luxury Goods

Books and Publishing

Furniture and Home Decor

Electronics

Sporting Goods

Jewelry

Antiques and Vintage Items

Automotive Parts

Handmade Crafts

Relevant Teams

Legal

Operations

Finance

Sales

Procurement

Risk and Compliance

Supply Chain

Commercial

Business Development

Inventory Management

Retail Operations

Relevant Roles

Legal Counsel

Retail Operations Manager

Inventory Manager

Sales Director

Finance Manager

Business Development Manager

Store Manager

Procurement Manager

Commercial Director

Risk Manager

Compliance Officer

Contract Administrator

Category Manager

Supply Chain Manager

Retail Buyer

Industries








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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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