Consignment Agreement
Let a shop sell your goods and pay you once they sell.
Let someone sell your goods and pay you once they sell.
- Business / Legal document
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Key features
Ownership stays with the consignor
The goods remain the owner's property until they are sold, and the seller cannot charge or pledge them.
Minimum price
A blank for the minimum price or price list; a sale below it needs the owner's consent.
The seller's share
A percentage of each sale price kept by the seller, with the rest paid to the owner with a statement.
Insurance and care
Who insures the goods, at what level, where they are kept and how they are displayed.
Stock checks and returns
The owner may inspect, the parties check stock together at agreed intervals, and unsold goods can be returned on notice.
About this document
A consignment agreement lets an owner place goods with a seller that holds them and sells them on the owner's behalf. Ownership stays with the owner until a sale, and the seller keeps a share of each sale.
It is common for art, crafts, clothing and similar goods. The form covers stock records, minimum prices, reports, insurance and return of unsold goods.
Is this document right for you?
Useful when
- You make or own goods and want a shop to sell them
- You run a shop that sells other people's goods
- You want a clear record of what is out on consignment
Commonly used by
- Artists and makers
- Boutiques and galleries
- Small retailers
Not sure? about your situation first.
Alternatives
These are separate documents, for different jobs.
- Sales agreementsSet the terms for selling goods or services.View document
- Distribution agreementsAppoint a distributor and set the terms of distribution.View document
- Reseller agreementsSet the terms for a business reselling your products.View document
- Agency agreementsAppoint an agent to act or sell on your behalf.View document
When to use this
- A craftsperson places pieces in a local shop
- A gallery sells works on behalf of artists
- A boutique stocks a designer's range without buying it
What happens next
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More in Sales, Distribution & Commercial
- Sales agreementsSet the terms for selling goods or services.View document
- Distribution agreementsAppoint a distributor and set the terms of distribution.View document
- Supplier agreementsSet the terms of supply with the businesses you buy from.View document
- Agency agreementsAppoint an agent to act or sell on your behalf.View document
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Questions
About the consignment agreement
The seller is responsible for loss or damage while goods are in its care, and the form records who insures them.
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