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A Consignment Agreement lets one party (the consignor) place their goods with another party (the consignee) to sell them without transferring ownership. Under Swiss commercial law, the consignee acts as an agent, selling items on behalf of the consignor while earning a commission on each sale.

This arrangement is common in Swiss retail, especially for luxury goods, art, and high-end fashion. The consignor keeps ownership rights until the final sale, protecting them if the consignee faces bankruptcy. The agreement must clearly specify commission rates, payment terms, and inventory handling requirements to comply with Swiss Code of Obligations requirements.

Consider using a Consignment Agreement when selling valuable items through a third party while maintaining ownership until the final sale. This arrangement works especially well for Swiss retailers handling luxury watches, art galleries managing consigned artwork, or boutiques selling designer fashion items.

The agreement becomes essential when dealing with high-value inventory that requires special handling or when testing new markets without major upfront investment. Swiss businesses often use consignment to expand their reach while minimizing risk - particularly important for unique items where traditional wholesale arrangements might be too risky or impractical.

• Consignment Contract: Standard retail agreement used for general merchandise, covering basic terms like commission rates and payment schedules
• Equipment Consignment Agreement: Specialized version for industrial or medical equipment, including maintenance requirements and liability provisions
• Consignment Inventory Form: Supplementary document tracking detailed inventory descriptions, conditions, and valuations under Swiss accounting standards

• Retail Store Owners (Consignees): Accept and display items for sale, manage inventory, handle customer transactions, and earn commission on sales
• Product Owners (Consignors): Supply merchandise, retain ownership until sale, set pricing guidelines, and receive primary sale proceeds
• Legal Advisors: Draft and review Consignment Agreements to ensure compliance with Swiss commercial law and protect both parties' interests
• Accountants: Track inventory value, sales proceeds, and commission calculations according to Swiss accounting standards
• Insurance Providers: Offer coverage for consigned goods while in the consignee's possession

• Item Details: List all merchandise with descriptions, conditions, and agreed values for insurance purposes
• Commission Structure: Define exact commission rates, payment schedules, and any performance-based adjustments
• Timeframes: Specify the agreement duration, notice periods for termination, and inventory rotation schedules
• Handling Requirements: Document storage conditions, display guidelines, and security measures for consigned items
• Sales Process: Outline pricing policies, customer service standards, and transaction reporting requirements under Swiss law
• Insurance Coverage: Confirm appropriate insurance levels and responsibility for premiums between parties

• Party Identification: Full legal names, addresses, and business registration details of consignor and consignee
• Property Description: Detailed inventory list with values, conditions, and unique identifiers
• Commission Terms: Clear percentage rates, calculation methods, and payment schedules
• Risk Allocation: Liability provisions, insurance requirements, and loss prevention measures
• Duration & Termination: Agreement period, renewal terms, and notice requirements per Swiss Code of Obligations
• Dispute Resolution: Jurisdiction clause, applicable Swiss law, and mediation procedures
• Signatures: Dated signatures from authorized representatives with proper capacity

A Consignment Agreement differs significantly from an Agency Agreement in several key aspects under Swiss law, though both involve one party acting on behalf of another. Let's examine the crucial differences:

• Ownership Structure: In consignment, the consignor retains full ownership until final sale, while agency agreements don't typically involve property ownership transfer
• Payment Model: Consignment operates on a sale-specific commission basis, whereas agency agreements often include fixed fees plus variable compensation
• Risk Allocation: Consignees bear minimal inventory risk beyond safe storage, while agents typically assume broader business development responsibilities
• Scope of Authority: Consignment relationships focus specifically on selling predefined items, but agency agreements usually grant broader powers to represent and negotiate
• Legal Framework: Consignment falls under specific provisions of Swiss commercial law regarding bailment, while agency relationships are governed by broader agency provisions in the Code of Obligations