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Consignment Sales Agreement for Australia

Consignment Sales Agreement Template for Australia

A Consignment Sales Agreement under Australian law is a comprehensive legal document that establishes the terms and conditions under which one party (the consignor) provides goods to another party (the consignee) for sale without transferring ownership until the goods are sold. The agreement complies with Australian commercial law, including the Personal Property Securities Act 2009 and Australian Consumer Law, and sets out detailed provisions for pricing, commission structures, handling of goods, risk allocation, reporting requirements, and payment terms. It includes specific provisions for protecting the consignor's interest in the goods while they are in the consignee's possession and ensures compliance with relevant Australian state and federal regulations.

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What is a Consignment Sales Agreement?

The Consignment Sales Agreement is essential for businesses operating under a consignment model in Australia, where goods are provided to a seller without immediate transfer of ownership. This arrangement is common in retail, art galleries, luxury goods, and various other sectors where specialized sales channels are required. The agreement must comply with Australian legislation, including the Personal Property Securities Act 2009, Australian Consumer Law, and relevant state regulations. It typically includes comprehensive provisions for goods handling, commission structures, risk allocation, insurance requirements, and reporting obligations. The document is particularly important for protecting the consignor's interests while enabling the consignee to effectively market and sell the goods. Regular updates to this agreement may be needed to reflect changes in Australian commercial law and business practices.

What sections should be included in a Consignment Sales Agreement?

1. Parties: Identifies and provides full details of the consignor and consignee

2. Background: Explains the context of the agreement and the parties' intentions

3. Definitions and Interpretation: Defines key terms used throughout the agreement and sets out interpretation rules

4. Appointment and Scope: Establishes the consignment relationship and its exclusivity status

5. Delivery and Acceptance of Goods: Details the process for delivery, inspection, and acceptance of consigned goods

6. Title and Risk: Clarifies that title remains with consignor and addresses risk allocation

7. Storage and Handling: Specifies requirements for storage, handling, and maintenance of consigned goods

8. Sale of Goods: Details the terms and conditions for selling consigned goods

9. Pricing and Commission: Specifies pricing mechanisms and commission structure

10. Accounting and Payment: Sets out requirements for record-keeping, reporting, and payment terms

11. Insurance: Specifies insurance requirements for consigned goods

12. Term and Termination: Defines the agreement duration and termination provisions

13. Return of Goods: Procedures for returning unsold or rejected goods

14. General Provisions: Standard boilerplate clauses including governing law, notices, and dispute resolution

What sections are optional to include in a Consignment Sales Agreement?

1. Territory Rights: Defines geographical limitations on sales when territory restrictions apply

2. Marketing and Promotion: Includes when specific marketing obligations are required of the consignee

3. Minimum Performance Requirements: Sets sales targets or minimum performance standards when required

4. Intellectual Property: Required when branded goods are involved or when IP rights need protection

5. Staff Training: Include when specific product knowledge or handling training is required

6. Security Interest: Detailed PPSA provisions when additional security interests are required

7. Electronic Systems: When specific software or systems are required for inventory management

8. Confidentiality: Detailed confidentiality provisions when sensitive information is involved

What schedules should be included in a Consignment Sales Agreement?

1. Schedule 1 - Consigned Goods: Detailed list and description of goods to be consigned

2. Schedule 2 - Commission Rates: Detailed breakdown of commission rates for different product categories

3. Schedule 3 - Minimum Prices: List of minimum selling prices for consigned goods

4. Schedule 4 - Reporting Requirements: Templates and specifications for required reports

5. Schedule 5 - Storage Requirements: Detailed specifications for storage and handling requirements

6. Schedule 6 - Insurance Requirements: Specific insurance requirements and minimum coverage levels

7. Appendix A - Operating Procedures: Detailed procedures for handling, selling, and accounting for goods

8. Appendix B - Return Procedures: Specific procedures for returning unsold or damaged goods

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Australia

Publisher

Ƶ

Document Type

Sales Contract

Sector

Cost

Free to use
Relevant legal definitions











































Clauses



































Relevant Industries

Retail

Art and Antiques

Fashion and Apparel

Luxury Goods

Automotive Parts

Electronics

Furniture and Home Decor

Agricultural Products

Industrial Equipment

Jewelry and Watches

Books and Publications

Sporting Goods

Wine and Spirits

Relevant Teams

Legal

Commercial

Operations

Sales

Finance

Compliance

Supply Chain

Retail Operations

Risk Management

Procurement

Business Development

Relevant Roles

Commercial Director

Sales Manager

Legal Counsel

Operations Manager

Business Development Manager

Retail Manager

Supply Chain Manager

Inventory Manager

Finance Manager

Compliance Officer

Contract Administrator

Risk Manager

Store Manager

Category Manager

Procurement Manager

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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