Consignment Agreement Template

This consignment agreement template has 4 pages and is a MS Word file type listed under our legal agreements documents.

Sample of our consignment agreement template:

CONSIGNMENT AGREEMENT This Consignment Agreement (the "Agreement") is made and effective the [Date] BETWEEN: [YOUR COMPANY NAME] (the "Principal"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] AND: [RECIPIENT NAME] (the "Consignee"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] In consideration of the terms and covenants of this agreement, and other valuable consideration, the parties agree as follows: RECITALS The parties recite and declare: Principal conducts a manufacturing business described as follows: [describe]. Principal desires to arrange for the sale and distribution of its merchandise throughout [territory]. Consignee has agreed to undertake the marketing of principal's merchandise on the terms set forth in this agreement. EXCLUSIVE APPOINTMENT Consignee shall have the exclusive right to sell and distribute principal's merchandise throughout [territory] during the term of this agreement. DELIVERY OF MERCHANDISE Principal shall deliver to consignee such quantity of its merchandise that consignee requires for sale from [his or her or its] place of business at [street address], [city], [state/province], [country]. Principal shall pay all freight and shipping charges. Consignee shall be responsible for any loss of or damage to merchandise while it is under [his or her] control. SALE OF MERCHANDISE Consignee shall devote [his or her] best efforts to the sale and distribution of principal's merchandise throughout the territory referred to above. All sales made by consignee shall be for cash. Credit sales may be made by consignee on written authority only, and on terms which principal may approve prior to such sales. All sales prices shall be fixed by principal. Consignee shall not sell principal's merchandise at less than the authorized prices, which prices will be reflected in price schedules that will be furnished to consignee from time to time. MONTHLY STATEMENTS; COMPENSATION Consignee shall furnish principal with monthly statements indicating all sales transactions during the preceding month and the extent of current inventory. Such statements shall be received by principal no later than the [specify] day of each month. With the monthly statement, consignee shall remit to principal all monies received by [him or her] from the sale of goods, [if appropriate, add: together with signed receipts or bills of lading for credit sales]. As soon as practicable after the [specify] day of each month, principal shall render a written statement to consignee showing sales during the preceding month, and shall remit to consignee net commissions for such sales in accordance with the commission schedule set forth in Exhibit A, which is attached to this agreement. MANAGEMENT OF CONSIGNEE'S BUSINESS Consignee shall have entire charge of the management and operation of [his or her] business; [he or she] shall furnish all equipment and vehicles, and hire and pay the wages of all assistants and employees required for the operation of [his or her] business. Principal reserves no supervision or control over consignee in the facilities, employees, and methods to be used and employed by consignee in carrying out the purposes of this agreement, and shall in no event be responsible for negligence of consignee or consignee's employees. TITLE TO MERCHANDISE Consigned merchandise shall remain the property of principal until sold in the regular course of business, except that consignee shall be responsible for all shortages of stock. EMPLOYEE BENEFIT PAYMENTS