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Auto Consignment Agreement Template for Netherlands

A comprehensive legal agreement governed by Dutch law that establishes the terms and conditions under which a vehicle owner (consignor) authorizes a dealership (consignee) to sell their vehicle on their behalf. The agreement covers crucial aspects including vehicle custody, pricing strategy, commission structure, responsibilities of both parties, insurance requirements, and sale proceeds handling. It incorporates specific provisions required under Dutch consumer protection laws, vehicle registration regulations, and VAT requirements, while ensuring compliance with the Dutch Civil Code (Burgerlijk Wetboek) provisions regarding consignment arrangements.

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What is a Auto Consignment Agreement?

The Auto Consignment Agreement is essential for businesses and individuals in the Netherlands seeking to establish a legal framework for vehicle sales through dealerships. This document is typically used when a vehicle owner wants to sell their vehicle through a professional dealer without transferring ownership until the final sale. The agreement, governed by Dutch law, details all aspects of the consignment arrangement including vehicle handling, pricing, commission structures, and regulatory compliance. It incorporates requirements from various Dutch regulations including the Civil Code (Burgerlijk Wetboek), Vehicle Registration Regulations (Kentekenreglement), and consumer protection laws. The document is particularly relevant for luxury car sales, classic vehicles, or situations where owners prefer professional representation in the sale process.

What sections should be included in a Auto Consignment Agreement?

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, explaining the consignor's desire to sell their vehicle through the consignee's dealership

3. Definitions: Key terms used throughout the agreement, including technical and legal terminology

4. Appointment and Scope: Terms of the consignment appointment and scope of authority granted to the dealer

5. Vehicle Details: Comprehensive description of the vehicle(s) being consigned, including registration numbers, specifications, and condition

6. Duration: Term of the agreement, including start date and termination provisions

7. Pricing and Commission: Agreed pricing strategy, minimum sale price, and commission structure

8. Payment Terms: Terms for handling sale proceeds, commission payments, and timing of settlements

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

10. Responsibilities of Consignor: Vehicle owner's obligations, including maintaining insurance and providing necessary documentation

11. Vehicle Presentation and Marketing: Requirements for vehicle display, marketing efforts, and promotional activities

12. Insurance and Risk: Insurance requirements and allocation of risk during the consignment period

13. Warranties and Representations: Warranties regarding vehicle ownership, condition, and authority to sell

14. Liability and Indemnification: Allocation of liability and indemnification obligations between parties

15. Termination: Grounds for termination and post-termination procedures

16. Governing Law and Jurisdiction: Specification of Dutch law as governing law and jurisdiction for disputes

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

1. Multiple Vehicle Provisions: Additional terms for consignment of multiple vehicles - used when consignor has a fleet

2. International Sales: Additional provisions for vehicles that may be sold to buyers outside the Netherlands

3. Classic Car Provisions: Special terms for classic, vintage, or collector vehicles requiring specialized handling

4. Restoration Services: Terms covering any restoration or repair work to be performed during consignment

5. Digital Marketing Rights: Specific provisions for online marketing and social media promotion

6. Exclusivity Clause: Terms granting exclusive rights to the dealer for selling the vehicle

7. Performance Targets: Specific sales targets or timeframes for the dealer to achieve

8. Storage and Security: Additional terms for specialized storage requirements or security measures

What schedules should be included in a Auto Consignment Agreement?

1. Schedule 1 - Vehicle Specification: Detailed technical specifications, features, and condition report of the vehicle

2. Schedule 2 - Pricing Structure: Detailed breakdown of pricing strategy, minimum price, and commission calculations

3. Schedule 3 - Vehicle Documentation: List of all vehicle documents provided (registration, maintenance history, etc.)

4. Schedule 4 - Condition Report: Detailed assessment of vehicle condition including photographs and noted defects

5. Schedule 5 - Marketing Plan: Agreed marketing strategy and promotional activities

6. Appendix A - Insurance Certificates: Copies of relevant insurance documentation

7. Appendix B - Required Maintenance: Schedule of required maintenance during consignment period

8. Appendix C - Authorized Representatives: List of personnel authorized to act on behalf of each party

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

Jurisdiction

Netherlands

Document Type

Car Sale Agreement

Sector

Sales

Cost

Free to use

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