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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."
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
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
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
Automotive
Retail
Vehicle Distribution
Automotive Finance
Insurance
Luxury Goods
Transportation
Fleet Management
Vehicle Leasing
Legal
Sales
Operations
Compliance
Risk Management
Finance
Business Development
Contract Administration
Vehicle Operations
Customer Service
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
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