This Consignment Agreement template is designed for use under Maltese law when establishing a commercial relationship where goods are provided for sale without immediate transfer of ownership. The document is particularly relevant for businesses looking to expand their distribution channels without traditional wholesale arrangements, or for retailers seeking to minimize inventory risk. The agreement comprehensively addresses key aspects required under Maltese law, including clear title retention provisions, VAT compliance, and commercial code requirements. It includes essential provisions for consignment relationships such as delivery terms, storage obligations, commission structures, reporting requirements, and return procedures. This template aligns with Malta's Civil Code (Chapter 16) and Commercial Code (Chapter 13) requirements while providing flexibility to accommodate various business models and industry-specific needs.
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1. Parties: Identifies and provides full details of the consignor and consignee
2. Background: Explains the context of the agreement and the parties' intentions
3. Definitions: Defines key terms used throughout the agreement
4. Appointment and Scope: Establishes the consignment relationship and defines its scope
5. Delivery and Storage: Details the arrangements for delivery of goods and storage requirements
6. Title and Risk: Clarifies that title remains with consignor and allocates risk responsibilities
7. Pricing and Commission: Sets out the pricing mechanism and commission structure
8. Payment Terms: Specifies payment arrangements and timing
9. Obligations of Consignor: Lists the consignor's duties and responsibilities
10. Obligations of Consignee: Lists the consignee's duties and responsibilities
11. Reporting and Records: Specifies reporting requirements and record-keeping obligations
12. Term and Termination: Defines the duration and termination provisions
13. Return of Unsold Goods: Procedures for returning unsold merchandise
14. Confidentiality: Protects confidential information of both parties
15. Governing Law and Jurisdiction: Specifies Maltese law as governing law and jurisdiction
16. General Provisions: Standard boilerplate clauses including notices, amendments, etc.
1. Insurance: Required when specific insurance arrangements need to be documented
2. Quality Control: Include when dealing with sensitive or regulated products
3. Marketing and Display: Include when specific marketing or display requirements exist
4. Intellectual Property: Required when IP rights need protection, especially for branded goods
5. Data Protection: Include when personal data processing is involved
6. Non-Competition: Include when restricting consignee from selling competing products
7. Force Majeure: Include when specific force majeure provisions are needed beyond standard ones
8. Bank Guarantee: Include when additional financial security is required
1. Schedule 1 - Products: Detailed list of consigned products with specifications
2. Schedule 2 - Commission Structure: Detailed breakdown of commission rates and calculations
3. Schedule 3 - Storage Requirements: Specific storage and handling requirements for the goods
4. Schedule 4 - Reporting Template: Standard format for regular sales and inventory reports
5. Schedule 5 - Service Levels: Detailed service level requirements and KPIs
6. Appendix A - Return Procedures: Detailed procedures for returning unsold goods
7. Appendix B - Insurance Requirements: Specific insurance requirements and coverage details
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