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Auto Consignment Agreement for Switzerland

Auto Consignment Agreement Template for Switzerland

A comprehensive legal agreement governed by Swiss law that establishes the terms and conditions under which a vehicle owner (consignor) entrusts their vehicle to a dealership (consignee) for sale. The agreement outlines the responsibilities of both parties, including vehicle maintenance, insurance requirements, pricing strategies, commission structures, and sales procedures. It incorporates specific provisions required under the Swiss Code of Obligations and relevant automotive trade regulations, while addressing key aspects such as risk allocation, payment terms, and liability during the consignment period.

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What is a Auto Consignment Agreement?

The Auto Consignment Agreement is a specialized contract used in Switzerland when a vehicle owner wishes to sell their vehicle through a professional dealership while retaining ownership until the final sale. This document is particularly relevant for high-value vehicles, classic cars, or situations where owners prefer professional handling of the sales process. The agreement must comply with Swiss commercial law, particularly the Code of Obligations (OR) regarding agency and sales contracts. It details crucial elements such as vehicle valuation, commission structures, insurance requirements, and sales authorization terms. The document serves to protect both parties' interests by clearly defining responsibilities, liability allocation, and payment procedures throughout the consignment period.

What sections should be included in a Auto Consignment Agreement?

1. Parties: Identification of the consignor (vehicle owner) and consignee (dealer), including full legal names, addresses, and registration details

2. Background: Brief context explaining the purpose of the agreement and the parties' intentions regarding the vehicle consignment arrangement

3. Definitions: Key terms used throughout the agreement including 'Vehicle', 'Consignment Period', 'Sale Price', 'Commission', etc.

4. Appointment and Scope: Terms of the dealer's appointment as consignee and the scope of authority to sell the vehicle

5. Vehicle Details: Comprehensive description of the vehicle including make, model, year, VIN, condition, and existing warranties

6. Consignment Period: Duration of the consignment arrangement, including start date, end date, and renewal terms

7. Pricing and Commission: Agreed minimum sale price, commission structure, and payment terms

8. Responsibilities of Consignee: Dealer's obligations regarding vehicle display, maintenance, marketing, and sales efforts

9. Responsibilities of Consignor: Vehicle owner's obligations including providing documentation and maintaining valid registration

10. Insurance and Risk: Insurance requirements and allocation of risk during the consignment period

11. Vehicle Maintenance and Storage: Terms for vehicle storage, maintenance, and permitted use during consignment

12. Sales Process: Procedures for price negotiation, acceptance of offers, and completion of sale

13. Payment Terms: Process for handling sale proceeds, commission payment, and transfer of funds

14. Termination: Conditions and process for early termination of the agreement

15. General Provisions: Standard legal provisions including governing law, notices, and amendment procedures

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

1. Test Drive Protocol: Specific procedures and liability arrangements for test drives - include when test drives will be permitted

2. International Sales: Additional provisions for cross-border sales - include if international buyers will be targeted

3. Multiple Vehicle Addendum: Additional terms for consigning multiple vehicles - include when more than one vehicle is involved

4. Restoration Services: Terms for any restoration or repair work to be performed - include if vehicle requires work before sale

5. Marketing Budget: Specific provisions regarding marketing expenses and cost sharing - include if significant marketing investment is required

6. Exclusivity Clause: Terms granting exclusive rights to the dealer - include if dealer requires exclusivity

7. Sub-Consignment Rights: Terms allowing or prohibiting sub-consignment to other dealers - include if relevant to business model

What schedules should be included in a Auto Consignment Agreement?

1. Schedule 1 - Vehicle Condition Report: Detailed inspection report documenting vehicle condition at time of consignment

2. Schedule 2 - Vehicle Documentation: List of all vehicle documents provided (registration, service history, etc.)

3. Schedule 3 - Commission Structure: Detailed breakdown of commission rates and calculation methods

4. Schedule 4 - Insurance Certificates: Copies of relevant insurance policies and certificates

5. Schedule 5 - Photographs: Official photographs documenting vehicle condition at consignment

6. Appendix A - Agreed Minimum Price Calculation: Documentation of agreed minimum price and market valuation

7. Appendix B - Marketing Plan: Detailed marketing strategy and activities to be undertaken

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

Jurisdiction

Switzerland

Sector

Sales

Cost

Free to use

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