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Auto Consignment Agreement Template for Nigeria

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Key Requirements PROMPT example:

Auto Consignment Agreement

"I need an Auto Consignment Agreement for my Lagos-based dealership company to accept luxury vehicles from individual owners, with a 12-month term starting January 2025, including special provisions for imported vehicles and a 15% commission structure."

Document background
The Auto Consignment Agreement is a crucial document in the Nigerian automotive market, used when vehicle owners wish to sell their vehicles through established dealers without transferring ownership until sale. This agreement type is particularly relevant in Nigeria's growing automotive sector, where both imported and locally-sourced vehicles are commonly sold through dealership networks. The document addresses key aspects required under Nigerian law, including clear title provisions, consumer protection requirements, and automotive industry regulations. It outlines specific terms for vehicle handling, marketing, pricing strategies, commission structures, and risk allocation. The agreement is designed to protect both the consignor's ownership rights and the consignee's business interests while ensuring compliance with relevant Nigerian legislation, including the Sale of Goods Act and Consumer Protection laws.
Suggested Sections

1. Parties: Identification and details of the consignor (vehicle owner) and consignee (dealer), including business registration details

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

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

4. Appointment and Scope: Terms of the consignment relationship and scope of authority granted to the consignee

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

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

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

8. Responsibilities of Consignor: Obligations of the vehicle owner including documentation and warranty provisions

9. Responsibilities of Consignee: Dealer's obligations regarding vehicle display, maintenance, and sales efforts

10. Title and Risk: Provisions regarding vehicle ownership and risk allocation

11. Insurance and Liability: Insurance requirements and allocation of liability for damage or loss

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

13. Confidentiality: Protection of confidential information and trade secrets

14. Governing Law: Specification of Nigerian law as governing law and jurisdiction

15. Dispute Resolution: Procedures for handling disputes between parties

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

Optional Sections

1. Import Compliance: Required when dealing with imported vehicles, covering customs and regulatory compliance

2. Digital Systems: Include when parties use specific software or platforms for inventory management

3. Marketing Requirements: Add when specific marketing obligations or restrictions apply to the dealer

4. After-Sales Service: Include when the dealer provides maintenance or repair services

5. Multiple Location Provisions: Required when the dealer operates across multiple locations

6. Exclusivity Terms: Include when granting exclusive rights for specific vehicles or territories

7. Performance Metrics: Add when implementing specific sales targets or performance standards

8. Environmental Compliance: Include when dealing with specific environmental requirements or eco-friendly vehicles

Suggested Schedules

1. Schedule 1 - Vehicle Details: List and specifications of consigned vehicles

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

3. Schedule 3 - Required Documentation: List of required documents for vehicle consignment

4. Schedule 4 - Condition Report Template: Standard form for recording vehicle condition at consignment and sale

5. Schedule 5 - Operating Procedures: Detailed procedures for handling, displaying, and selling vehicles

6. Appendix A - Insurance Requirements: Specific insurance coverage requirements and minimum limits

7. Appendix B - Reporting Templates: Standard forms for sales reporting and accounting

8. Appendix C - Marketing Guidelines: Approved marketing practices and brand usage guidelines

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

Vehicle Retail

Transportation

Fleet Management

Vehicle Import/Export

Luxury Vehicles

Commercial Vehicles

Used Car Market

Automotive Finance

Insurance

Relevant Teams

Legal

Sales

Operations

Finance

Compliance

Risk Management

Business Development

Commercial Operations

Import/Export

Vehicle Operations

Dealer Relations

Relevant Roles

Automotive Sales Manager

Fleet Manager

Vehicle Import Manager

Dealership Owner

Sales Director

Business Development Manager

Commercial Director

Automotive Operations Manager

Vehicle Portfolio Manager

Compliance Officer

Legal Counsel

Risk Manager

Finance Manager

Dealer Principal

Automotive Business Owner

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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