The Consignee Agreement serves as a critical document in commercial relationships where goods are placed with a seller but ownership is retained by the supplier until sale. Common in retail, art, and luxury goods sectors, this agreement type is particularly relevant under U.S. law where the Uniform Commercial Code governs many aspects of the relationship. The document typically details commission structures, payment terms, handling requirements, and risk allocation, while protecting the consignor's ownership interests. It's essential for businesses operating on a consignment model to have proper documentation that complies with both federal and state regulations.
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1. Parties: Identification of consignor and consignee, including full legal names and addresses
2. Background: Context of the consignment relationship and purpose of the agreement
3. Definitions: Key terms used throughout the agreement including 'Consigned Goods', 'Commission', 'Territory'
4. Appointment: Terms of appointment of consignee and scope of authority
5. Consignment Terms: Core terms regarding the consignment arrangement, including pricing and commission structure
6. Title and Risk: Clarification that title remains with consignor until sale
7. Obligations of Consignee: Duties regarding storage, care, and sale of goods
8. Payment Terms: Process for handling payments and remittance to consignor
9. Term and Termination: Duration of agreement and termination provisions
1. Insurance: Insurance requirements for consigned goods - used when dealing with high-value items or specific risk factors
2. Territory Restrictions: Geographic limitations on sales - used when consignee's authority is limited to specific regions
3. Marketing Requirements: Specific obligations regarding promotion of goods - used when consignor wants to control marketing approach
4. Minimum Performance Requirements: Sales targets or other performance metrics - used when consignor wants to ensure minimum performance levels
1. Schedule of Consigned Goods: Detailed list of goods being consigned, including descriptions and pricing
2. Commission Structure: Detailed breakdown of commission calculations and terms
3. Operating Procedures: Specific procedures for handling, storing, and selling goods
4. Insurance Requirements: Detailed insurance specifications and coverage requirements
5. Territory Map: If applicable, map or description of authorized sales territory
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