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Consignment Agreement Form for Malaysia

Consignment Agreement Form Template for Malaysia

A comprehensive legal document governed by Malaysian law that establishes a consignment arrangement between a consignor (owner of goods) and a consignee (seller). This agreement details the terms and conditions under which the consignee will hold, display, and sell goods on behalf of the consignor while maintaining the consignor's ownership until sale. The document incorporates relevant provisions from Malaysian commercial law, including the Contracts Act 1950 and Sale of Goods Act 1957, and addresses crucial aspects such as pricing, commission structures, risk allocation, reporting requirements, and return procedures.

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What is a Consignment Agreement Form?

The Consignment Agreement Form is essential for businesses operating under Malaysian jurisdiction who wish to establish a formal arrangement for the sale of goods through a consignment model. This document is particularly relevant when a business owner wants to maintain ownership of goods while allowing another party to sell them, common in retail, art galleries, and luxury goods sectors. The agreement comprehensively covers key aspects such as delivery terms, pricing mechanisms, commission structures, inventory management, and risk allocation, all while ensuring compliance with Malaysian commercial laws. The document serves as a crucial tool for protecting both parties' interests and clearly defining their responsibilities in the consignment relationship.

What sections should be included in a Consignment Agreement Form?

1. Parties: Identifies and provides full details of the consignor and consignee

2. Background: Sets out the context of the agreement and brief description of the business relationship

3. Definitions: Defines key terms used throughout the agreement

4. Appointment and Scope: Establishes the consignment relationship and its general scope

5. Delivery and Acceptance of Goods: Details the process for delivery, inspection, and acceptance of consigned goods

6. Title and Risk: Clarifies that title remains with consignor until sale, and addresses risk allocation

7. Pricing and Commission: Sets out the pricing mechanism for goods and consignee's commission structure

8. Payment Terms: Specifies payment procedures, timing, and methods

9. Responsibilities of Consignor: Lists all obligations and duties of the consignor

10. Responsibilities of Consignee: Details all obligations and duties of the consignee, including storage and care of goods

11. Reporting and Records: Specifies requirements for inventory tracking, sales reporting, and record-keeping

12. Term and Termination: States the duration of the agreement and termination provisions

13. Return of Unsold Goods: Procedures for returning unsold goods to consignor

14. General Provisions: Standard boilerplate clauses including governing law, notices, and amendments

What sections are optional to include in a Consignment Agreement Form?

1. Insurance: Detailed insurance requirements when high-value goods are involved

2. Marketing and Display: Specific requirements for how goods must be displayed or marketed, relevant for retail consignment

3. Exclusivity: Terms of exclusive arrangements if applicable

4. Minimum Performance Requirements: Sales targets or minimum performance standards if required

5. Storage and Handling Requirements: Specific storage or handling requirements for specialized goods

6. Intellectual Property: IP provisions when branded goods or licensed products are involved

7. Territory Restrictions: Geographic limitations on sale of consigned goods

8. Sub-consignment Rights: Rights and restrictions regarding sub-consignment arrangements

What schedules should be included in a Consignment Agreement Form?

1. Schedule 1 - List of Consigned Goods: Detailed inventory of goods placed on consignment, including descriptions and quantities

2. Schedule 2 - Pricing Structure: Detailed pricing information and commission calculations

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

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

5. Schedule 5 - Service Level Requirements: Detailed performance metrics and service standards

6. Appendix A - Return Policy: Detailed procedures for handling returns and damaged goods

7. Appendix B - Quality Standards: Specific quality requirements and inspection criteria

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

Jurisdiction

Malaysia

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions































Clauses



































Relevant Industries

Retail

Wholesale Trade

Manufacturing

Fashion and Apparel

Electronics

Luxury Goods

Art and Antiques

Automotive

Consumer Goods

Furniture and Home Decor

Agricultural Products

Jewelry and Watches

Relevant Teams

Legal

Commercial

Sales

Procurement

Operations

Supply Chain

Retail Operations

Business Development

Compliance

Finance

Logistics

Relevant Roles

Commercial Director

Sales Manager

Procurement Manager

Business Development Manager

Retail Operations Manager

Legal Counsel

Contract Administrator

Supply Chain Manager

Inventory Manager

Chief Commercial Officer

Gallery Owner

Store Manager

Logistics Manager

Compliance Officer

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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