The Consignment Sales Agreement is a crucial document used when a business wants to place its goods with another party for sale without immediately transferring ownership. This arrangement is particularly common in German business practice and is governed by specific provisions in the German Commercial Code (HGB) and Civil Code (BGB). The agreement details how the consignee will store, display, and sell the consignor's goods, specifying commission rates, reporting requirements, and payment terms. It's especially valuable for businesses testing new markets or managing specialized inventory without capital investment, while providing consignors with broader market access through established retail channels. The document includes comprehensive provisions for inventory management, risk allocation, and operational procedures, ensuring compliance with German commercial law requirements.
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1. Parties: Identification of the consignor and consignee, including full legal names, registration numbers, and addresses
2. Background: Context of the agreement and brief description of the business relationship
3. Definitions: Definitions of key terms used throughout the agreement
4. Appointment and Scope: Appointment of consignee and scope of authority to sell goods on consignment
5. Delivery and Storage of Goods: Terms for delivery, storage requirements, and handling of consignment goods
6. Pricing and Commission: Pricing structure, commission rates, and payment terms
7. Title and Risk: Retention of title provisions and allocation of risk for consignment goods
8. Obligations of Consignor: Responsibilities of the consignor including product supply and support
9. Obligations of Consignee: Responsibilities of the consignee including sales efforts and reporting
10. Accounting and Reporting: Requirements for financial reporting, inventory management, and reconciliation
11. Term and Termination: Duration of agreement and termination provisions
12. Return of Goods: Procedures for returning unsold goods
13. Confidentiality: Protection of confidential information
14. Governing Law and Jurisdiction: Specification of German law as governing law and jurisdiction for disputes
1. Insurance: Required when specific insurance arrangements need to be detailed
2. Marketing and Promotion: Include when consignee has specific marketing responsibilities
3. Minimum Performance Requirements: Used when setting specific sales targets or performance metrics
4. Data Protection: Required when personal data processing is involved (GDPR compliance)
5. Exclusivity: Include when granting exclusive rights for specific territories or products
6. Product Training: Required when specific product knowledge or training is necessary
7. Warranty Handling: Include when consignee handles warranty claims
8. Sub-consignment Rights: Include when sub-consignment arrangements are permitted
1. Schedule 1 - Product List: Detailed list of consignment products with specifications and pricing
2. Schedule 2 - Commission Structure: Detailed breakdown of commission rates and calculation methods
3. Schedule 3 - Territory Definition: Definition of geographic areas covered by the agreement
4. Schedule 4 - Reporting Templates: Standard forms for inventory and sales reporting
5. Schedule 5 - Storage Requirements: Specific requirements for storage and handling of goods
6. Appendix A - Operating Procedures: Detailed procedures for day-to-day operations
7. Appendix B - Returns Policy: Procedures and conditions for returns and exchanges
Relevant legal definitions
Clauses
Relevant Industries
Retail
Manufacturing
Fashion and Apparel
Art and Luxury Goods
Industrial Equipment
Consumer Electronics
Automotive Parts
Furniture and Home Goods
Sporting Goods
Books and Publishing
Jewelry and Accessories
Relevant Teams
Legal
Sales
Operations
Finance
Supply Chain
Procurement
Compliance
Business Development
Retail Operations
Inventory Management
Relevant Roles
Commercial Director
Sales Manager
Inventory Manager
Legal Counsel
Business Development Manager
Operations Director
Finance Manager
Retail Operations Manager
Supply Chain Manager
Compliance Officer
Procurement Manager
Contract Administrator
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