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Simple Consignment Agreement Template for Australia

Simple Consignment Agreement Template for Australia

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Simple Consignment Agreement

"I need a Simple Consignment Agreement for my art gallery in Sydney, where I'll be displaying and selling works from multiple artists, with a standard 30% commission rate and specific requirements for artwork handling and insurance."

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What is a Simple Consignment Agreement?

The Simple Consignment Agreement is designed for use in Australian business contexts where parties wish to establish a consignment sales arrangement. This document is particularly valuable when a business owner wants to place their goods with a retailer or seller without transferring ownership until the actual sale occurs. The agreement encompasses essential elements required under Australian law, including provisions compliant with the Competition and Consumer Act 2010 and state-specific commercial regulations. It's commonly used in retail, art galleries, automotive parts, and various other sectors where consignment arrangements are prevalent. The Simple Consignment Agreement includes detailed terms covering commission rates, payment procedures, handling requirements, and reporting obligations, while clearly establishing the rights and responsibilities of both consignor and consignee. This document is essential for protecting both parties' interests and ensuring clear communication of expectations in a consignment relationship.

What sections should be included in a Simple Consignment 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: Defines key terms used throughout the agreement

4. Appointment and Scope: Establishes the consignment relationship and its basic terms

5. Ownership and Risk: Clarifies that ownership remains with consignor and specifies risk allocation

6. Consignment Process: Details the process for delivery, storage, and handling of consigned goods

7. Pricing and Commission: Specifies the pricing structure and commission rates

8. Payment Terms: Outlines payment procedures, timing, and methods

9. Obligations of Consignee: Lists the consignee's responsibilities including storage, display, and sales

10. Obligations of Consignor: Details the consignor's responsibilities including product quality and delivery

11. Reporting Requirements: Specifies required reports, frequency, and content

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

13. General Provisions: Standard legal provisions including governing law, notices, and assignment

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

1. Insurance: Required when specific insurance arrangements need to be detailed

2. Marketing and Display: Include when specific marketing or display requirements are needed

3. Returns and Recalls: Include for products that may require return or recall procedures

4. Intellectual Property: Include when branded products or IP rights need protection

5. Exclusivity: Include when territorial or product exclusivity is granted

6. Minimum Performance Requirements: Include when setting specific sales targets or performance metrics

7. Data Protection: Include when personal data processing is involved

8. Force Majeure: Include when specific force majeure provisions are required beyond standard terms

What schedules should be included in a Simple Consignment Agreement?

1. Schedule 1 - Consigned Goods: Detailed list and description of consigned products

2. Schedule 2 - Commission Rates: Detailed breakdown of commission rates by product category

3. Schedule 3 - Operating Procedures: Specific procedures for handling, storing, and selling consigned goods

4. Schedule 4 - Reporting Template: Template for required sales and inventory reports

5. Schedule 5 - Territory: Definition of geographical area covered by the agreement

6. Appendix A - Storage Requirements: Specific requirements for storage and handling of goods

7. Appendix B - Quality Standards: Required quality standards and inspection procedures

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

Relevant legal definitions






























Clauses






























Relevant Industries

Retail

Art and Antiques

Fashion and Apparel

Consumer Goods

Electronics

Automotive Parts

Luxury Goods

Furniture and Home Decor

Sporting Goods

Books and Publications

Agricultural Products

Jewelry and Accessories

Relevant Teams

Legal

Operations

Sales

Finance

Procurement

Compliance

Commercial

Retail Operations

Supply Chain

Business Development

Contract Administration

Relevant Roles

Business Owner

Retail Manager

Sales Director

Commercial Manager

Operations Manager

Legal Counsel

Procurement Manager

Store Manager

Inventory Manager

Finance Manager

Compliance Officer

Contract Administrator

Business Development Manager

Gallery Owner

Distribution 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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