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The Consignment Agreement is a crucial document for businesses in the Philippines looking to expand their distribution channels without directly selling their goods to intermediaries. This arrangement, governed by Philippine law including the Civil Code and commercial regulations, allows product owners (consignors) to place their goods with retailers or dealers (consignees) while maintaining ownership until final sale. The document is particularly valuable in retail, luxury goods, and specialized markets where direct purchase of inventory may be risky or impractical. It details critical aspects such as commission structures, payment terms, handling procedures, and risk allocation, while ensuring compliance with Philippine commercial law requirements. The agreement protects both parties' interests by clearly defining responsibilities, reporting requirements, and procedures for unsold goods.

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

2. Background: Explains the context of the agreement and the parties' intentions to enter into a consignment arrangement

3. Definitions: Defines key terms used throughout the agreement to ensure clarity and prevent misinterpretation

4. Appointment and Scope: Establishes the consignment relationship and defines the scope of the consignee's authority

5. Consignment of Goods: Details the process of delivering, accepting, and managing consigned goods

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

7. Payment Terms: Outlines the payment procedures, timing, and methods for settling accounts between parties

8. Title and Risk: Clarifies that title remains with the consignor and specifies risk allocation

9. Obligations of the Consignor: Lists all duties and responsibilities of the consignor

10. Obligations of the Consignee: Lists all duties and responsibilities of the consignee

11. Record Keeping and Reporting: Specifies requirements for maintaining records and reporting sales and inventory

12. Term and Termination: States the duration of the agreement and conditions for termination

13. Return of Goods: Procedures for returning unsold goods to the consignor

14. General Provisions: Standard legal clauses including governing law, notices, and entire agreement