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Auto Consignment Agreement Template for India

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Key Requirements PROMPT example:

Auto Consignment Agreement

"I need an Auto Consignment Agreement for my luxury car dealership in Mumbai, which will act as consignee for high-end vehicles from multiple owners, with a specific focus on vehicles valued over ₹50 lakhs and including special handling requirements for exotic cars."

Document background
The Auto Consignment Agreement serves as a critical legal framework for vehicle sales arrangements in India, particularly useful when owners or manufacturers want to sell vehicles through established dealership networks without transferring ownership until final sale. This document type is essential for businesses in the automotive sector operating under Indian jurisdiction, providing detailed terms for vehicle consignment, sales authorization, commission structures, and risk management. The agreement ensures compliance with Indian automotive regulations while protecting both consignor and consignee interests. It typically includes comprehensive provisions for vehicle handling, marketing, pricing strategies, and sales reporting, making it suitable for various scenarios from individual vehicle consignments to large-scale dealer network arrangements.
Suggested Sections

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

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

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

4. Appointment and Scope: Terms of dealer appointment and scope of authority to sell vehicles on consignment

5. Term and Termination: Duration of the agreement and conditions for termination

6. Consignment Process: Procedures for vehicle delivery, inspection, and acceptance into consignment

7. Pricing and Commission: Pricing mechanism, commission structure, and payment terms

8. Responsibilities of Consignor: Obligations of the vehicle owner including documentation, warranties, and representations

9. Responsibilities of Consignee: Dealer's obligations including vehicle storage, maintenance, marketing, and sales efforts

10. Title and Risk: Provisions regarding vehicle ownership, transfer of title, and risk allocation

11. Insurance and Liability: Insurance requirements and allocation of liability for damages or losses

12. Reporting and Accounting: Requirements for sales reporting, inventory management, and financial accounting

13. Representations and Warranties: Standard warranties regarding authority, vehicle condition, and legal compliance

14. Confidentiality: Protection of confidential information and trade secrets

15. Governing Law and Jurisdiction: Applicable law and jurisdiction for dispute resolution

16. General Provisions: Standard boilerplate clauses including notices, amendments, and severability

Optional Sections

1. Exclusivity: Used when the dealer is granted exclusive rights to sell certain vehicles or in specific territories

2. Marketing and Promotion: Include when specific marketing requirements or restrictions need to be detailed

3. After-Sales Service: Required when the dealer is responsible for providing post-sale service or warranty support

4. Performance Targets: Include when minimum sales targets or performance metrics are required

5. Digital Platform Integration: Used when the agreement involves online sales platforms or digital inventory management systems

6. Cross-Border Sales: Include for agreements involving inter-state or international vehicle movements

7. Special Handling Requirements: Used for luxury, vintage, or special category vehicles requiring specific care

8. Force Majeure: Optional detailed clause for circumstances beyond parties' control, particularly relevant in uncertain times

Suggested Schedules

1. Schedule A - Vehicle Details: List of vehicles under consignment, including specifications, condition reports, and pricing

2. Schedule B - Commission Structure: Detailed breakdown of commission rates, including any variable rates based on vehicle categories or sales targets

3. Schedule C - Operating Procedures: Detailed procedures for vehicle handling, storage, display, and sales process

4. Schedule D - Required Documentation: List of required documents for vehicle transfer and sale

5. Schedule E - Territory Definition: Definition of geographical areas covered by the agreement, if applicable

6. Schedule F - Insurance Requirements: Detailed insurance specifications and minimum coverage requirements

7. Appendix 1 - Vehicle Condition Report Template: Standard template for documenting vehicle condition at consignment

8. Appendix 2 - Sales Report Format: Template for periodic sales reporting and accounting

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 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

Automotive

Retail

Dealership

Transportation

Logistics

Financial Services

Insurance

Luxury Goods

Used Vehicles

Fleet Management

Relevant Teams

Legal

Sales

Operations

Finance

Compliance

Risk Management

Business Development

Commercial

Inventory Management

Dealer Relations

Contract Administration

Relevant Roles

Automotive Sales Manager

Dealer Principal

Fleet Manager

Legal Counsel

Compliance Officer

Business Development Manager

Operations Manager

Finance Manager

Risk Manager

Inventory Manager

Sales Director

Commercial Director

Contract Administrator

Vehicle Operations Supervisor

Dealership Manager

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,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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