Selling goods for someone else and making money on commission is quite a popular business model, from the physical retail world to the digital space.
It’s a great way to test new products on the market, mitigate marketing costs, and allow everyone to focus on their area of expertise.
For instance, manufacturers can keep creating stock while experienced sellers handle the sales and marketing aspects. But entering this type of agreement can create problems if the details are fuzzy or the obligations aren’t enforceable in court. This is where the Consignment Agreement comes in.
The Consignment Agreement isn’t mandatory, but it is a recommended contract. Its purpose is to set the terms for the storage, sale, resale, or transfer of various goods between the consignor and consignee.
In general, it outlines the responsibilities and obligations of the consignee towards the consignor and vice versa. Simultaneously, it also clarifies the commissions the consignee is entitled to after selling the goods, and any penalties if they fail to hold up their end of the agreement.
Depending on your state, a Consignment Agreement may also be known as:
A reseller of goods is a perfect example of someone who needs a Consignment Agreement. It protects the reseller or consignee from not being awarded their commissions.
Consignors or wholesalers also benefit from a consignment agreement. This is because the contract sets clear obligations and liabilities for any reseller who sells their goods.
The Consignment Agreement can be enforced when either party has treated the other unfairly and outside the scope of the contract.
Create your own documents by answering our easy-to-understand questionnaires to get exactly what you need out of your Consignment Agreement.
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All you need to do is fill out a simple questionnaire, print it, and sign. No printer? No worries. You and other parties can even sign online.
Creating a Consignment Agreement on your own can be a daunting task, even if you have some legal background. Each contract can have highly situational terms and legal jargon that’s difficult to understand. Using a specialized service is ideal to ensure the best protection and limited liability for both parties involved.
Let 360 Legal Forms help with our extensive library of attorney-vetted legal forms. The process is fast and easy. All you have to do is fill out our easy-to-understand questionnaire. Once complete, simply download your form as a PDF or Word document from your secure online account.
To create your Consignment Agreement, please provide:
Every Consignment Agreement will be unique to its scope, industry, length, and parties involved. Additional information may be necessary on a per case basis.
To be enforceable, a Consignment Agreement must be signed by both the consignor and consignee. Depending on the terms, this can be done via electronic signatures. However, witnessing and notarizing the contract is an optional step. Doing so will make challenging the validity of the signature very difficult but not necessary to legally enforce the terms of the contract.
With 360 Legal Forms, you can receive your customized Consignment Agreement in any format. It’s always best to review such a contract before signing it and ensure you understand the terms.
We recommend signing two copies, so both the consignor and consignee have one. Furthermore, creating digital and physical copies is a good idea. You can store them in different locations to avoid losing the contract.
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