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Auto Consignment Agreement Template for Malaysia

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Key Requirements PROMPT example:

Auto Consignment Agreement

"I need an Auto Consignment Agreement for my luxury car dealership in Kuala Lumpur that will handle high-end vehicles valued over RM500,000, with provisions for cross-border sales to Singapore and Thailand, to be implemented by March 2025."

Document background
The Auto Consignment Agreement is essential for businesses operating in the Malaysian automotive sector where vehicle owners wish to sell their vehicles through established dealerships without transferring ownership until sale. This document is particularly useful for luxury car owners, fleet operators, and individual sellers seeking professional sales representation. The agreement, governed by Malaysian law, includes comprehensive provisions covering vehicle handling, pricing strategies, commission structures, and risk management. It ensures compliance with local regulations while providing clear operational guidelines and protecting both parties' interests. The Auto Consignment Agreement is commonly used by dealerships expanding their inventory without direct purchase, and by vehicle owners seeking professional sales channels while maintaining ownership control until final sale.
Suggested Sections

1. Parties: Identifies and provides full details of the consignor (vehicle owner) and consignee (dealer)

2. Background: Explains the context of the agreement, including the consignor's ownership of vehicles and consignee's business of selling vehicles

3. Definitions: Defines key terms used throughout the agreement

4. Appointment and Scope: Establishes the consignment relationship and defines the consignee's authority to sell vehicles

5. Term and Termination: Specifies the duration of the agreement and conditions for termination

6. Consignment Process: Details the procedure for placing vehicles on consignment, including delivery and acceptance

7. Pricing and Commission: Establishes the pricing mechanism and commission structure

8. Payment Terms: Specifies payment procedures, timing, and handling of proceeds from vehicle sales

9. Responsibilities of Consignor: Outlines the vehicle owner's obligations, including providing documentation and warranties

10. Responsibilities of Consignee: Details the dealer's obligations regarding vehicle storage, marketing, and sales

11. Vehicle Condition and Maintenance: Addresses responsibility for vehicle maintenance and condition during consignment

12. Risk and Insurance: Allocates risk and specifies insurance requirements

13. Representations and Warranties: Contains standard warranties about vehicle ownership, authority to sell, and business operations

14. Governing Law and Jurisdiction: Specifies Malaysian law as governing law and sets jurisdiction for disputes

Optional Sections

1. Exclusivity: Optional clause establishing whether the consignment arrangement is exclusive or non-exclusive

2. Minimum Performance Requirements: Sets sales targets or minimum performance standards, used when consignor wants to ensure active marketing

3. Marketing and Advertising: Detailed provisions about marketing responsibilities and cost allocation, used for larger scale operations

4. Cross-Border Sales: Required when vehicles may be sold to buyers in other countries

5. Digital Platform Integration: Used when the consignee operates an online sales platform

6. After-Sales Service: Details post-sale service arrangements, used when consignee provides maintenance services

7. Recall Procedures: Required for new vehicles or when dealing with manufacturer warranties

8. Subletting Rights: Used when consignee may need to engage other dealers or showrooms

Suggested Schedules

1. Schedule 1: Vehicle List: Detailed list of consigned vehicles including specifications, condition, and documentation

2. Schedule 2: Pricing Structure: Detailed pricing guidelines and commission rates for different vehicle categories

3. Schedule 3: Operational Procedures: Detailed procedures for vehicle handover, inspection, and sales process

4. Schedule 4: Required Documentation: List of required documents for vehicle transfer and registration

5. Schedule 5: Insurance Requirements: Specific insurance requirements and coverage details

6. Appendix A: Vehicle Condition Report Template: Standard form for documenting vehicle condition at consignment

7. Appendix B: Sales Report Template: Standard format for periodic sales reporting

8. Appendix C: Marketing Guidelines: Guidelines for vehicle advertising and promotion

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

Automotive

Retail

Vehicle Distribution

Automotive Finance

Insurance

Luxury Goods

Transportation

Fleet Management

Vehicle Leasing

Relevant Teams

Legal

Sales

Operations

Compliance

Risk Management

Finance

Business Development

Contract Administration

Vehicle Operations

Customer Service

Relevant Roles

Dealership Manager

Fleet Manager

Sales Director

Automotive Sales Manager

Legal Counsel

Compliance Officer

Risk Manager

Operations Manager

Business Development Manager

Vehicle Portfolio Manager

Automotive Finance Manager

Contract Administrator

Chief Operating Officer

General 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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