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Consignment Contract Template for Switzerland

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Key Requirements PROMPT example:

Consignment Contract

"I need a Consignment Contract for my luxury watch business in Geneva, where we'll be receiving high-end timepieces from manufacturers to sell in our boutiques across Switzerland, with the agreement starting January 2025 and including specific provisions for handling pieces valued over CHF 50,000."

Document background
The Consignment Contract is a specialized commercial agreement used when a business wants to place its goods with another party for sale without immediately transferring ownership. Under Swiss law, this document combines elements of agency and sales contracts, governed primarily by the Swiss Code of Obligations. It's particularly useful in situations where suppliers want to maintain ownership of goods until sold, while allowing retailers or dealers to stock and sell these items for a commission. The contract addresses critical aspects such as inventory management, commission structures, risk allocation, and reporting requirements. This type of agreement is commonly used in retail, luxury goods, and art sectors, providing flexibility for both parties while maintaining clear legal protections under Swiss jurisdiction.
Suggested Sections

1. Parties: Identification of the Consignor and Consignee, including full legal names, addresses, and registration details

2. Background: Context of the agreement and brief description of the parties' business relationship

3. Definitions: Definitions of key terms used throughout the agreement

4. Appointment and Scope: Formal appointment of the consignee and detailed scope of the consignment arrangement

5. Duration and Termination: Term of the agreement, renewal provisions, and termination conditions

6. Delivery and Storage of Goods: Terms for delivery, storage requirements, and handling of consigned goods

7. Title and Risk: Provisions clarifying that title remains with consignor until sale, and allocation of risk

8. Pricing and Commission: Structure of pricing for goods and commission rates for the consignee

9. Payment Terms: Terms for payment collection, remittance to consignor, and commission payment schedule

10. Reporting and Accounting: Requirements for inventory tracking, sales reporting, and financial accounting

11. Obligations of the Consignor: Responsibilities of the consignor including product supply and support

12. Obligations of the Consignee: Responsibilities of the consignee including storage, sales efforts, and customer service

13. Returns and Unsold Goods: Procedures for handling returns and disposal of unsold merchandise

14. Confidentiality: Protection of confidential information exchanged during the consignment relationship

15. Governing Law and Jurisdiction: Specification of Swiss law as governing law and jurisdiction for disputes

Optional Sections

1. Insurance: Required when specific insurance coverage needs to be maintained by either party

2. Intellectual Property: Needed when the consigned goods involve branded products or protected designs

3. Marketing and Promotion: Include when the consignee has specific responsibilities for marketing the consigned goods

4. Exclusivity: Used when granting exclusive rights for certain territories or product lines

5. Sub-consignment: Include when the consignee may be permitted to engage sub-consignees

6. Force Majeure: Optional but recommended clause addressing unforeseeable circumstances

7. Data Protection: Required when personal data processing is involved in the consignment relationship

8. Quality Control: Include when specific quality standards must be maintained for the goods

9. Minimum Performance Requirements: Used when setting specific sales targets or performance metrics

Suggested Schedules

1. Schedule 1: Product List: Detailed list of consigned products including specifications and pricing

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

3. Schedule 3: Territory Definition: Definition of geographical areas covered by the consignment arrangement

4. Schedule 4: Storage Requirements: Specific requirements for storage conditions and handling procedures

5. Schedule 5: Reporting Templates: Standard forms for inventory and sales reporting

6. Appendix A: Operating Procedures: Detailed procedures for day-to-day operations

7. Appendix B: Quality Standards: Specific quality standards and inspection procedures if applicable

Authors

Alex Denne

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

Luxury Goods

Art and Antiques

Fashion and Accessories

Electronics

Automotive

Furniture and Home Decor

Jewelry and Watches

Sporting Goods

Books and Publications

Agricultural Products

Industrial Equipment

Relevant Teams

Legal

Commercial

Sales

Operations

Supply Chain

Finance

Procurement

Retail Operations

Compliance

Risk Management

Logistics

Business Development

Contract Administration

Relevant Roles

Commercial Director

Sales Manager

Retail Operations Manager

Supply Chain Manager

Business Development Manager

Legal Counsel

Procurement Manager

Inventory Manager

Finance Director

Compliance Officer

Store Manager

Category Manager

Logistics Manager

Contract Administrator

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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