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Retail Consignment Contract Template for Indonesia

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Key Requirements PROMPT example:

Retail Consignment Contract

"I need a Retail Consignment Contract for my luxury handbag business to place products in high-end department stores across Indonesia, with specific provisions for product display standards and staff training requirements."

Document background
A Retail Consignment Contract is essential for businesses engaging in consignment arrangements within Indonesia's retail sector. This document type is specifically designed to comply with Indonesian legal requirements, including the Civil Code and Trade Law, while establishing clear terms for consignment relationships. It's typically used when product owners want to sell their goods through established retailers without transferring ownership until the final sale to consumers. The contract covers crucial aspects such as commission rates, inventory management, sales reporting, risk allocation, and return procedures. This agreement type is particularly important in Indonesia's retail landscape, where consignment arrangements are common practice across various retail sectors, from fashion to electronics. The document must align with local regulatory requirements while providing practical operational guidelines for both consignor and consignee.
Suggested Sections

1. Parties: Identification of the consignor (owner of goods) and consignee (retailer), including their legal details and addresses

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

3. Definitions: Definitions of key terms used throughout the agreement

4. Appointment and Scope: Establishes the consignment relationship and defines the general scope of products to be consigned

5. Consignment Terms: Core terms including pricing, commission rates, and payment terms

6. Delivery and Storage: Requirements for product delivery, storage conditions, and handling

7. Title and Risk: Clarification that title remains with consignor until sale, and allocation of risk

8. Sales and Revenue: Process for sales, pricing, revenue collection, and remittance to consignor

9. Reporting and Accounting: Requirements for sales reporting, inventory tracking, and financial accounting

10. Insurance and Liability: Insurance requirements and allocation of liability between parties

11. Term and Termination: Duration of agreement and circumstances for termination

12. Return of Goods: Process for returning unsold goods to consignor

13. Governing Law: Specification of Indonesian law as governing law

14. Dispute Resolution: Process for resolving disputes between parties

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

Optional Sections

1. Online Sales: Additional provisions for online retail sales channels, required if e-commerce is part of the consignment arrangement

2. Marketing and Display: Specific requirements for product display and marketing, important for high-end or branded products

3. Exclusivity: Terms of exclusive arrangement if applicable, including territorial or product restrictions

4. Staff Training: Requirements for staff training on product knowledge and handling, important for technical or luxury products

5. Minimum Performance: Minimum sales targets or performance metrics, useful for significant consignment relationships

6. Product Warranties: Specific warranty terms and handling of warranty claims, important for durable goods

7. Intellectual Property: Protection and usage of trademarks and other IP, important for branded products

Suggested Schedules

1. Schedule 1 - Product List: Detailed list of consigned products including SKUs, descriptions, and wholesale/retail prices

2. Schedule 2 - Commission Structure: Detailed breakdown of commission rates, including any variations by product category or sales volume

3. Schedule 3 - Operating Procedures: Detailed procedures for inventory management, sales reporting, and reconciliation

4. Schedule 4 - Storage Requirements: Specific requirements for product storage, handling, and display

5. Schedule 5 - Return Procedures: Detailed procedures for returning unsold or damaged goods

6. Schedule 6 - Reporting Templates: Standard templates for sales reports, inventory reports, and financial statements

7. Appendix A - Store Locations: List of approved retail locations covered by the agreement

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 Electronics

Luxury Goods

Jewelry

Home Furnishings

Sporting Goods

Books and Stationery

Handicrafts

Beauty and Cosmetics

Accessories

Relevant Teams

Legal

Operations

Finance

Retail Operations

Commercial

Procurement

Supply Chain

Compliance

Sales

Business Development

Contract Administration

Relevant Roles

Retail Operations Manager

Commercial Director

Legal Counsel

Chief Financial Officer

Store Manager

Inventory Manager

Sales Director

Procurement Manager

Business Development Manager

Compliance Officer

Finance Manager

Supply Chain Manager

Category Manager

Retail Director

Contract Administrator

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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