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Consignment Agreement Form for Germany

Consignment Agreement Form Template for Germany

A Consignment Agreement Form under German law (governed by the Handelsgesetzbuch and B眉rgerliches Gesetzbuch) is a legal document that establishes the terms and conditions under which one party (the consignor) provides goods to another party (the consignee) for sale without transferring ownership until the actual sale occurs. The agreement details the rights and obligations of both parties, including commission structures, handling of goods, reporting requirements, and payment terms. It incorporates specific German legal requirements regarding commercial relationships, agency arrangements, and consignment-specific regulations while ensuring compliance with EU regulations where applicable.

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What is a Consignment Agreement Form?

The Consignment Agreement Form is a crucial document in German commercial law, used when a business wants to place its goods with another party for sale without immediately transferring ownership. This arrangement, governed by the German Commercial Code (HGB) and Civil Code (BGB), allows the consignor to maintain ownership of the goods until they are sold to end customers, while the consignee earns a commission on successful sales. The document typically includes detailed provisions for inventory management, commission structures, reporting requirements, risk allocation, and return procedures. It's particularly valuable for businesses expanding their distribution network, testing new markets, or managing specialized product sales where immediate purchase of inventory isn't practical or desired. The Consignment Agreement Form needs to comply with German commercial regulations while addressing practical business needs such as storage requirements, quality control, and financial reporting.

What sections should be included in a Consignment Agreement Form?

1. Parties: Identification and details of the Consignor and Consignee, including full legal names, registration numbers, and addresses

2. Background: Context of the agreement and brief description of the parties' business relationship

3. Definitions: Definitions of key terms used throughout the agreement, including 'Consigned Goods', 'Territory', 'Commission Rate', etc.

4. Appointment and Scope: Terms of appointment of the Consignee and scope of the consignment arrangement

5. Delivery and Storage of Consigned Goods: Procedures for delivery, acceptance, and storage of consigned goods

6. Title and Risk: Confirmation that title remains with Consignor until sale, and allocation of risk for goods

7. Pricing and Commission: Pricing structure for consigned goods and commission calculation method

8. Payment Terms: Terms for payment collection, remittance to Consignor, and commission payment

9. Reporting and Accounting: Requirements for sales reporting, inventory management, and accounting procedures

10. Obligations of the Consignor: Consignor's responsibilities including product supply and support

11. Obligations of the Consignee: Consignee's duties including storage, sales efforts, and customer service

12. Term and Termination: Duration of the agreement and termination provisions

13. Return of Goods: Procedures for returning unsold goods upon termination or as otherwise agreed

14. Governing Law and Jurisdiction: Specification of German law as governing law and jurisdiction for disputes

15. General Provisions: Standard legal provisions including notices, amendments, and severability

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

1. Insurance: Specific insurance requirements if not covered in main obligations - used when high-value goods are involved

2. Marketing and Promotion: Marketing obligations and restrictions - relevant when specific promotional activities are required

3. Exclusivity: Terms of exclusive rights - used when territorial or product exclusivity is granted

4. Minimum Performance Requirements: Sales targets and consequences - included when specific performance levels are required

5. Data Protection: GDPR compliance provisions - necessary when personal data processing is involved

6. Intellectual Property: IP rights and usage terms - important when branded goods or licensed products are involved

7. Bank Guarantee: Requirements for financial security - used for high-value consignments or new business relationships

8. Force Majeure: Provisions for unforeseen circumstances - particularly relevant in long-term or international arrangements

What schedules should be included in a Consignment Agreement Form?

1. Schedule 1 - Consigned Goods: Detailed list of products covered by the agreement, including specifications and pricing

2. Schedule 2 - Commission Structure: Detailed commission calculations, including any variations by product or volume

3. Schedule 3 - Territory: Detailed description of geographical area covered by the agreement

4. Schedule 4 - Operating Procedures: Detailed procedures for ordering, delivery, storage, and returns

5. Schedule 5 - Reporting Templates: Standard forms for inventory and sales reporting

6. Appendix A - Storage Requirements: Specific requirements for storage and handling of consigned goods

7. Appendix B - Quality Standards: Quality control procedures and standards to be maintained

8. Appendix C - Insurance Requirements: Detailed insurance specifications and coverage requirements

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

Germany

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions




































Clauses








































Relevant Industries

Retail

Wholesale Trade

Fashion and Apparel

Luxury Goods

Electronics

Automotive Parts

Art and Antiques

Furniture and Home Goods

Industrial Equipment

Agricultural Products

Consumer Goods

Publishing and Books

Jewelry and Watches

Sporting Goods

Relevant Teams

Legal

Sales

Operations

Finance

Supply Chain

Compliance

Commercial

Business Development

Inventory Management

Distribution

Logistics

Retail Operations

Account Management

Relevant Roles

Sales Director

Commercial Manager

Business Development Manager

Operations Manager

Inventory Manager

Legal Counsel

Contract Manager

Supply Chain Manager

Finance Director

Retail Manager

Distribution Manager

Logistics Manager

Compliance Officer

Account Manager

Commercial Director

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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