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A Consignment Agreement lets one business (the consignor) place their goods with another business (the consignee) to sell them without transferring ownership. Under Singapore's Sale of Goods Act, the consignee acts as an agent, displaying and selling the items while the consignor keeps legal title until the final sale.

These agreements spell out key terms like commission rates, pricing rules, and how to handle unsold items. They're common in retail, where boutiques display designer clothes, art galleries showcase paintings, or bookstores stock publishers' books. The consignee typically takes a percentage of each sale while minimizing their inventory risk.

Use a Consignment Agreement when you want to sell products through another business without giving up ownership. This arrangement works perfectly for artists placing artwork in galleries, fashion designers showcasing clothes in boutiques, or manufacturers testing new products in retail stores across Singapore.

The agreement becomes essential when dealing with high-value items, seasonal merchandise, or when expanding into new markets without major inventory investments. It protects both parties under Singapore's Sale of Goods Act by clearly defining commission structures, handling procedures, and liability terms. Many local retailers and suppliers choose this model to reduce financial risk while maximizing market reach.

• Clothing Consignment Contract: Tailored for fashion retail, specifying garment care, seasonal rotations, and pricing markdowns
• Equipment Consignment Agreement: Focuses on machinery and technical equipment, including maintenance requirements and performance guarantees
• Consignment Contract For Artists: Designed for artwork sales through galleries, covering exhibition rights and artist attribution
• Consignment Inventory Contract: Used for general retail stock management, emphasizing inventory tracking and restocking terms

• Product Owners (Consignors): Manufacturers, artists, designers, and suppliers who want to sell their goods through third-party locations while maintaining ownership
• Retail Partners (Consignees): Shops, galleries, boutiques, and showrooms that display and sell consigned items for a commission
• Legal Advisors: Corporate lawyers and in-house counsel who draft and review agreements to ensure compliance with Singapore's Sale of Goods Act
• Store Managers: Responsible for day-to-day handling of consigned goods, inventory tracking, and sales reporting
• Finance Teams: Handle commission calculations, payments, and accounting for consignment transactions

• Basic Details: Gather full legal names, business registration numbers, and contact details for both consignor and consignee
• Product Information: List items with descriptions, quantities, condition requirements, and agreed retail prices
• Financial Terms: Define commission rates, payment schedules, and handling of GST obligations under Singapore tax laws
• Operational Rules: Specify display requirements, sales reporting frequency, and inventory management procedures
• Risk Management: Document insurance requirements, liability terms, and procedures for damaged or lost items
• Agreement Duration: Set clear start dates, renewal terms, and termination conditions that work for both parties

• Party Details: Full legal names, addresses, and registration numbers of consignor and consignee
• Goods Description: Detailed inventory list, pricing terms, and quality standards of consigned items
• Commission Structure: Clear breakdown of fees, payment terms, and GST treatment
• Risk Allocation: Insurance requirements, liability terms, and loss handling procedures
• Operational Terms: Sales reporting, inventory management, and display requirements
• Duration & Termination: Agreement period, renewal options, and exit conditions
• Dispute Resolution: Singapore law as governing law, mediation procedures, and jurisdiction clauses

A Consignment Agreement differs significantly from an Agency Agreement, though both involve one party acting on behalf of another. While they may seem similar at first glance, their legal structures and purposes serve distinct business needs under Singapore law.

• Ownership Structure: In consignment, the consignor retains full ownership until final sale, while agency agreements typically don't involve product ownership
• Risk Distribution: Consignment places inventory risk primarily with the consignor; agency agreements distribute risk based on the specific terms of representation
• Compensation Model: Consignment uses sales-based commission structures, while agency agreements often include fixed fees plus variable components
• Scope of Authority: Consignees have limited authority specific to selling goods, whereas agents often have broader powers to represent and bind their principals
• Legal Obligations: Consignment focuses on inventory management and sales, while agency agreements cover broader relationship terms and fiduciary duties