Copy ESigning Consignment Agreement Template For Free

Consignment is an arrangement in which goods are left with a third party to sell. The party that sells the goods on consignment receives a portion of the profits, either as a flat rate fee or commission. Selling via a consignment arrangement can be a low-commission, low-time-investment way of selling items or services.

What is a Consignment Agreement? A consignment agreement is a legally binding document between a consignee and a consignor for the sale, storage, transfer, resale and use of a commodity. The consignee accepts goods from sellers to sell to potential buyers.

A consignment agreement is a contract between the consignor and the consignee, and should include these basic provisions: Parties. Provide the names and addresses of the consignor and the consignee. Item(s) for sale. ... Pricing. ... Payment. ... Expenses. ... Record-keeping. ... Ownership. ... Insurance.

Disadvantages of consignment selling While your merchandise is being exposed on the shelves of a wholesaler or retailer, you get no money until they sell. As the manufacturer you must have enough cash on hand to wait extended periods for payments of merchandise sold.

The consignee pays the consignor for the goods when they are sold by the consignee. Prior to sale by the consignee, the consignor holds title to the consignor's goods and the consignor bears the risk of loss.

Consignment Agreement Instructions Introduction of parties and date of the agreement. Explanation of why the parties are entering into the agreement. Details of the consigned property, including model, serial numbers, factory codes, agreed retail prices, and dates of delivery.

Typically, consignment agreements include details such as pricing structure, length of time for which an item will be held by the consignee, payment terms upon sale and any fees or commissions charged by either party.