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Consignment Contract Template for Indonesia

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Key Requirements PROMPT example:

Consignment Contract

"I need a Consignment Contract under Indonesian law for my luxury handbag business, where I'll be placing goods with high-end department stores in Jakarta, with a 25% commission structure and quarterly performance reviews starting March 2025."

Document background
The Consignment Contract is essential for businesses operating in Indonesia that wish to establish a consignment sales arrangement. This document is particularly relevant when a business wants to place its products with retailers or dealers without transferring ownership until final sale. The agreement comprehensively addresses key aspects such as product handling, commission structures, sales reporting, and risk allocation, while ensuring compliance with Indonesian laws including the Civil Code (KUHPerdata) and Commercial Code (KUHD). It's commonly used in retail, luxury goods, and various other sectors where businesses prefer to maintain ownership of goods until sold to end customers. The document includes specific provisions required under Indonesian law and commercial practice, making it suitable for both domestic and international businesses operating in Indonesia.
Suggested Sections

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

2. Background: Context of the agreement, business relationship, and general purpose of the consignment arrangement

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

4. Appointment and Scope: Terms of the Consignee's appointment and the scope of authority to sell the consigned goods

5. Ownership of Goods: Clear statement that ownership remains with Consignor until sale to end customers

6. Delivery and Storage: Terms for delivery, acceptance, and storage requirements for consigned goods

7. Pricing and Commission: Structure of pricing for consigned goods and commission rates for the Consignee

8. Sales Proceeds and Payment: Procedures for handling sales proceeds and payment arrangements between parties

9. Records and Reporting: Requirements for maintaining sales records and reporting obligations

10. Risk and Insurance: Allocation of risk and insurance requirements for consigned goods

11. Term and Termination: Duration of the agreement and grounds for termination

12. Governing Law: Specification of Indonesian law as governing law and jurisdiction

13. General Provisions: Standard boilerplate clauses including notices, amendments, and entire agreement

Optional Sections

1. Marketing and Display: Requirements for product display and marketing efforts - include when consignment involves retail display

2. Quality Control: Standards for maintaining product quality - include for perishable or sensitive goods

3. Minimum Performance Requirements: Sales targets or minimum performance standards - include when specific performance levels are required

4. Territory Restrictions: Geographical limitations on sales - include when territory exclusivity is granted

5. Return of Goods: Procedures for returning unsold goods - include for seasonal or time-sensitive products

6. Electronic Systems: Provisions for online sales platforms - include when e-commerce is involved

7. Intellectual Property: Use of trademarks and branding - include when branded products are involved

8. Confidentiality: Protection of confidential information - include when sensitive business information is shared

Suggested Schedules

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

2. Schedule 2 - Commission Rates: Detailed breakdown of commission rates for different product categories or sales volumes

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

4. Schedule 4 - Reporting Templates: Standard forms for sales reports and inventory tracking

5. Schedule 5 - Storage Requirements: Specific requirements for storage conditions and handling procedures

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

7. Appendix B - Return Procedures: Detailed procedures for handling returns and unsold 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

Relevant legal definitions
































Clauses



































Relevant Industries

Retail

Fashion and Apparel

Consumer Goods

Electronics

Luxury Goods

Automotive Parts

Furniture

Art and Collectibles

Books and Publications

Agricultural Products

Handicrafts

Relevant Teams

Legal

Commercial

Sales

Operations

Finance

Supply Chain

Retail Operations

Procurement

Risk Management

Compliance

Business Development

Relevant Roles

Sales Director

Commercial Manager

Retail Operations Manager

Supply Chain Manager

Business Development Manager

Legal Counsel

Compliance Officer

Finance Manager

Inventory Manager

Store Manager

Procurement Manager

Operations Director

Contract Administrator

Risk Manager

Retail 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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