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Simple Consignment Agreement Template for Canada

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Key Requirements PROMPT example:

Simple Consignment Agreement

"I need a Simple Consignment Agreement for my art gallery in Toronto to display and sell paintings from multiple artists, with a 30% commission structure and quarterly payment terms, to be effective from March 1, 2025."

Document background
The Simple Consignment Agreement is a fundamental commercial document used in Canadian business operations when a business owner wants to place their goods for sale with another party without immediately transferring ownership. This arrangement is particularly common in retail, art galleries, luxury goods, and specialty stores. The agreement addresses key aspects such as commission rates, payment terms, inventory management, and risk allocation, while ensuring compliance with Canadian federal and provincial regulations. The document is essential for protecting both parties' interests and clearly defining their rights and obligations. This type of agreement is particularly useful for businesses testing new markets, seasonal merchandise, or specialized products where immediate purchase of inventory may not be practical or desired.
Suggested Sections

1. Parties: Identifies and provides full legal details of the Consignor and Consignee

2. Background: Explains the context of the agreement and the parties' intentions to enter into a consignment arrangement

3. Definitions: Defines key terms used throughout the agreement

4. Appointment and Scope: Establishes the consignment relationship and defines its scope

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 while goods are in Consignee's possession

7. Pricing and Commission: Specifies the pricing mechanism for goods and Consignee's commission structure

8. Payment Terms: Outlines payment procedures, timing, and reporting requirements

9. Care of Goods: Defines Consignee's obligations regarding storage, maintenance, and insurance of goods

10. Term and Termination: Specifies duration of agreement and termination provisions

11. Return of Goods: Procedures for returning unsold goods to Consignor

12. General Provisions: Standard legal clauses including governing law, notices, and amendments

Optional Sections

1. Marketing and Display: Include when specific requirements exist for how goods should be marketed and displayed

2. Exclusivity: Add when either party requires territorial or product exclusivity

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

4. Inventory Management: Add for complex inventory tracking requirements

5. Internet Sales: Include when online sales are permitted or restricted

6. Intellectual Property: Add when use of trademarks or other IP is involved

7. Security Interest: Include when additional security arrangements are required

8. Staff Training: Add when specific product knowledge or training is required

Suggested Schedules

1. Schedule A - Product List: Detailed list of consigned products with descriptions and pricing

2. Schedule B - Commission Structure: Detailed breakdown of commission rates and calculation methods

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

4. Schedule D - Reporting Templates: Standard forms for inventory and sales reporting

5. Appendix 1 - Insurance Requirements: Specific insurance coverage requirements and limits

6. Appendix 2 - Quality Standards: Product quality standards and handling specifications

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓƵ | 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

Luxury Goods

Furniture and Home Decor

Sporting Goods

Electronics

Automotive Parts

Jewelry

Books and Publications

Agricultural Products

Handicrafts

Wine and Spirits

Relevant Teams

Legal

Operations

Finance

Sales

Procurement

Retail Operations

Compliance

Risk Management

Commercial

Inventory Management

Merchandising

Relevant Roles

Business Owner

Retail Manager

Operations Director

Commercial Manager

Sales Manager

Procurement Manager

Legal Counsel

Contract Administrator

Finance Manager

Inventory Manager

Store Manager

Gallery Owner

Merchandising Manager

Compliance Officer

Risk 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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