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A Consignment Agreement lets one party (the consignor) place their goods with another party (the consignee) to sell on their behalf. Under NZ law, the consignor keeps ownership of the items until they're sold, while the consignee typically earns a commission on each sale. These arrangements are common in retail, with art galleries, antique shops, and second-hand stores often using them.

The agreement protects both parties by clearly spelling out payment terms, handling of unsold items, and who bears the risk of damage or loss. It must comply with the Contract and Commercial Law Act 2017, especially around consumer rights and fair trading practices. Many Kiwi businesses use these agreements to test new products or expand their market reach without the full risk of buying inventory upfront.

Use a Consignment Agreement when you want to sell products through another business without transferring ownership. This works perfectly for artists placing artwork in galleries, manufacturers testing new products in retail stores, or vintage dealers working with specialist shops. The agreement lets you maintain control while accessing established sales channels and customer bases.

These agreements are especially valuable for small NZ businesses looking to expand without major inventory investments. They're also essential when dealing with high-value items where ownership protection matters, like luxury goods or collectibles. Just ensure your agreement follows Fair Trading Act requirements and clearly outlines commission structures, damage liability, and return policies.

• Clothing Consignment Contract: Tailored for fashion retailers and designers, with specific clauses for garment care, seasonal rotations, and sizing requirements. Includes detailed terms about condition standards and cleaning responsibilities.
• Retail Consignment Contract: A broader agreement for general retail goods, featuring flexible commission structures and inventory management terms. Commonly used in department stores and multi-brand outlets.
• Art Gallery Consignment: Specialized for artwork sales, including provisions for exhibition rights, artist attribution, and handling delicate pieces.
• Vehicle Consignment: Used by dealerships, with specific terms for test drives, maintenance during display, and compliance with Motor Vehicle Trading Act requirements.

• Consignors (Product Owners): Artists, designers, manufacturers, or individuals who own goods they want to sell through others. They maintain ownership until sale and set pricing guidelines.
• Consignees (Sellers): Retail stores, galleries, boutiques, or dealerships that display and sell consigned items. They handle customer service and receive commission on sales.
• Legal Advisors: Lawyers or business consultants who draft and review agreements to ensure compliance with NZ consumer protection laws.
• Store Managers: Oversee day-to-day consignment operations, including inventory tracking, sales reporting, and commission calculations.
• Insurance Providers: Offer coverage for consigned goods while in the consignee's possession.

• Party Details: Gather full legal names, business addresses, and GST numbers for both consignor and consignee.
• Product Information: List items with descriptions, conditions, pricing, and any special handling requirements.
• Commission Structure: Define exact commission rates, payment schedules, and any minimum sale prices.
• Duration Terms: Specify agreement length, renewal options, and notice periods for termination.
• Risk Management: Outline insurance requirements, liability for damage, and security measures.
• Operational Details: Document inventory tracking methods, reporting requirements, and return policies.
• Legal Compliance: Use our platform to generate a legally-sound agreement that meets NZ Fair Trading Act requirements.

• Party Identification: Full legal names, addresses, and contact details of consignor and consignee.
• Property Description: Detailed inventory list with values, conditions, and unique identifiers.
• Title Retention: Clear statement that ownership remains with consignor until sale.
• Commission Terms: Payment structure, rates, and timing of settlements.
• Risk Allocation: Insurance requirements and liability for loss or damage.
• Duration & Termination: Agreement length, renewal options, and exit procedures.
• Dispute Resolution: Process for handling disagreements under NZ jurisdiction.
• Signatures: Execution blocks with dates and witness requirements.

A Consignment Agreement differs significantly from an Agency Agreement. While both involve one party acting on behalf of another, they serve distinct purposes in NZ business law.

• Ownership Structure: In consignment, the consignor retains ownership until sale, while agency agreements don't typically involve product ownership transfer.
• Scope of Authority: Agency agreements grant broader powers to act on behalf of the principal, while consignment deals specifically with selling specific items.
• Risk Allocation: Consignment agreements focus heavily on inventory risk and damage liability, whereas agency agreements emphasize representation authority and decision-making powers.
• Payment Structure: Consignment typically involves commission on specific sales, while agency agreements might include retainers, fixed fees, or various compensation models.
• Legal Obligations: Agency agreements create fiduciary duties under NZ law, while consignment relationships focus mainly on sales and inventory management responsibilities.