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Simple Consignment Agreement Template for Nigeria

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Key Requirements PROMPT example:

Simple Consignment Agreement

"I need a Simple Consignment Agreement for my electronics distribution business in Lagos, Nigeria, where I will be providing high-end smartphones to retail stores, with specific requirements for product handling and a 15% commission structure."

Document background
This Simple Consignment Agreement template is designed for use in commercial transactions governed by Nigerian law, where parties wish to establish a consignment relationship for the sale of goods. The document is particularly useful for businesses looking to expand their distribution channels without significant upfront inventory costs, or for suppliers seeking to maintain control over their goods until final sale. It includes essential provisions required under Nigerian commercial law, addressing key aspects such as delivery terms, pricing mechanisms, commission structures, risk allocation, and reporting requirements. The agreement is commonly used across various sectors in Nigeria's economy and can be customized to accommodate specific business needs while ensuring compliance with local legal requirements.
Suggested Sections

1. Parties: Identifies and provides full details of the consignor and consignee, including registration numbers and addresses

2. Background: Sets out the context of the agreement and the parties' intentions regarding the consignment arrangement

3. Definitions: Defines key terms used throughout the agreement for clarity and consistency

4. Appointment and Scope: Establishes the consignment relationship and defines the scope of goods covered

5. Delivery and Storage: Details the arrangements for delivery, storage, and handling of consigned goods

6. Title and Risk: Clarifies that title remains with consignor while goods are in consignee's possession

7. Pricing and Commission: Specifies the pricing mechanism for goods and consignee's commission structure

8. Payment Terms: Outlines the payment procedures, timing, and methods

9. Reporting and Records: Sets out requirements for inventory tracking, sales reporting, and record-keeping

10. Term and Termination: Specifies the duration of the agreement and termination provisions

11. General Terms: Includes standard contractual provisions like notices, amendments, and governing law

Optional Sections

1. Insurance: Details insurance requirements when specific coverage needs to be maintained for high-value goods

2. Marketing and Display: Includes provisions about how goods should be marketed and displayed when relevant to the business relationship

3. Returns and Damaged Goods: Specifies procedures for handling returns and damaged goods when this is a significant concern

4. Exclusivity: Added when either party requires territorial or product exclusivity rights

5. Minimum Performance Requirements: Includes sales targets or minimum performance standards when required

6. Intellectual Property: Addresses IP rights when branded or proprietary products are involved

7. Data Protection: Include when personal data processing is involved in the consignment arrangement

Suggested Schedules

1. Schedule 1 - Consigned Goods: Detailed list of products covered under the consignment arrangement

2. Schedule 2 - Commission Structure: Detailed breakdown of commission rates and calculation methods

3. Schedule 3 - Operating Procedures: Specific procedures for handling, storing, and managing consigned goods

4. Schedule 4 - Reporting Templates: Standard forms and formats for required reports and records

5. Appendix A - Storage Location Details: Specifications of approved storage locations and facilities

6. Appendix B - Authorized Representatives: List of authorized personnel from both parties who can act under the agreement

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓƵ | 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

Retail

Fashion and Apparel

Electronics

Automotive Parts

Furniture and Home Goods

Agricultural Products

Consumer Goods

Art and Collectibles

Books and Publications

Jewelry and Luxury Items

Industrial Equipment

Pharmaceuticals

Relevant Teams

Legal

Commercial

Sales

Procurement

Operations

Supply Chain

Finance

Retail Operations

Distribution

Business Development

Compliance

Relevant Roles

Commercial Director

Sales Manager

Procurement Manager

Business Development Manager

Legal Counsel

Contract Manager

Operations Manager

Supply Chain Manager

Retail Manager

Distribution Manager

Finance Manager

Inventory Manager

Commercial Operations Director

Chief Commercial Officer

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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