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Consignment Store Agreement

Consignment Store Agreement Template for India

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Key Requirements PROMPT example:

Consignment Store Agreement

"I need a Consignment Store Agreement for my luxury handbag business where I'll be placing products in high-end retail stores across Mumbai and Delhi, with strict requirements for product display and handling, launching in January 2025."

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Document background
A Consignment Store Agreement is essential for businesses operating under a consignment model in India, where products are placed with retailers while maintaining ownership with the original supplier until final sale. This document type is particularly relevant in the current Indian retail landscape, where consignment arrangements offer flexibility and reduced risk for both parties. The agreement must comply with Indian Contract Act, 1872, Sale of Goods Act, 1930, and relevant GST regulations. It typically includes detailed provisions for inventory management, commission structures, reporting requirements, and risk allocation. The Consignment Store Agreement is particularly valuable for businesses looking to expand their market presence without significant capital investment in physical retail infrastructure, while ensuring clear legal protection for both consignor and consignee under Indian law.
Suggested Sections

1. Parties: Identifies and provides full details of the consignor and consignee, including registration numbers and addresses

2. Background: Explains the context of the agreement, including the nature of the business relationship and general purpose

3. Definitions: Defines key terms used throughout the agreement, including technical and commercial terms

4. Appointment and Scope: Details the appointment of the consignee and scope of consignment arrangement

5. Term: Specifies the duration of the agreement and renewal terms

6. Consignment Process: Outlines the process for delivery, storage, and handling of consigned goods

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

8. Title and Risk: Clarifies that title remains with consignor until sale and allocates risk responsibilities

9. Obligations of Consignor: Lists all responsibilities and obligations of the consignor

10. Obligations of Consignee: Details all responsibilities and duties of the consignee

11. Reporting and Accounting: Specifies reporting requirements, accounting procedures, and audit rights

12. Insurance and Liability: Covers insurance requirements and liability allocation between parties

13. Termination: Details grounds for termination and post-termination procedures

14. Dispute Resolution: Specifies mechanism for resolving disputes, including jurisdiction

15. General Provisions: Includes standard legal provisions like notices, amendments, waiver, etc.

Optional Sections

1. Exclusivity: Include when the consignee is granted exclusive rights in specific territories or for specific products

2. Marketing and Display: Include when specific requirements exist for product display and marketing

3. Return Policy: Include when there are specific procedures for handling customer returns

4. Quality Control: Include for products requiring specific quality standards or handling procedures

5. Intellectual Property: Include when branding, trademarks, or other IP rights need protection

6. Data Protection: Include when personal customer data or sensitive business information is involved

7. Force Majeure: Include when specific force majeure provisions beyond standard ones are needed

8. Training Requirements: Include when staff training for product handling or sales is required

Suggested Schedules

1. Schedule 1 - Product List: Detailed list of products covered under the consignment arrangement

2. Schedule 2 - Commission Structure: Detailed breakdown of commission rates and calculation methods

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

4. Schedule 4 - Reporting Format: Templates for required regular reports and accounting statements

5. Schedule 5 - Territory Definition: Definition of geographical areas covered by the agreement

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

7. Appendix B - Quality Standards: Specific quality standards and inspection procedures

8. Appendix C - Return Procedures: Detailed procedures for handling customer returns and damaged goods

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈË°æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
Relevant legal definitions









































Clauses









































Relevant Industries

Retail

Fashion and Apparel

Electronics

Luxury Goods

Furniture and Home Decor

Automotive Parts

Jewelry

Books and Publications

Sporting Goods

Art and Collectibles

Handicrafts

Consumer Goods

Agricultural Products

Relevant Teams

Legal

Commercial

Operations

Finance

Procurement

Sales

Retail Operations

Supply Chain

Compliance

Business Development

Merchandising

Relevant Roles

Retail Operations Manager

Commercial Director

Business Development Manager

Store Manager

Procurement Manager

Legal Counsel

Contract Manager

Sales Director

Inventory Manager

Finance Manager

Compliance Officer

Supply Chain Manager

Retail Director

Chief Commercial Officer

Merchandising 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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