Document background
The Consignment Inventory Agreement is essential for businesses operating under Irish law that wish to establish a consignment stock arrangement, where a supplier places goods under the custody of a distributor or retailer while retaining ownership until sale or usage. This arrangement is particularly valuable for businesses seeking to optimize inventory management, reduce working capital requirements for distributors, and maintain better control over their supply chain. The document addresses key commercial and legal requirements under Irish and EU law, including stock management, risk allocation, payment terms, and reporting obligations. It's commonly used in various industries where maintaining local stock availability is crucial but distributors prefer not to purchase inventory upfront. The agreement ensures clear delineation of responsibilities and protects both parties' interests while maintaining compliance with relevant regulations.
