Document background
The Simple Consignment Agreement is a fundamental commercial document used in Malaysian business transactions where goods are placed in the possession of a seller while ownership remains with the supplier until sale. This arrangement is particularly common in retail, luxury goods, and specialty markets where suppliers want to maintain control over their products while expanding their market reach. The agreement complies with Malaysian commercial law framework, including the Contracts Act 1950 and Sale of Goods Act 1957, and typically includes provisions for pricing, commission structures, inventory management, reporting requirements, and risk allocation. It's especially useful for businesses testing new markets or products, or when dealing with high-value items where transfer of ownership before sale isn't preferred.
