The Simple Consignment Agreement serves as a fundamental legal instrument in U.S. commerce, particularly useful when businesses want to sell products without purchasing inventory upfront. This contract type clearly defines the relationship between consignor and consignee, establishing rights, responsibilities, and financial arrangements. It typically includes provisions for inventory management, commission structures, payment terms, and risk allocation, all while adhering to U.S. commercial law requirements, particularly the Uniform Commercial Code's consignment provisions.
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1. Parties: Identification of consignor and consignee with full legal details
2. Background: Context of the consignment arrangement and purpose
3. Definitions: Key terms used throughout the agreement including consignment goods, territory, and commission
4. Consignment Terms: Core terms including pricing, commission structure, and payment terms
5. Title and Risk: Ownership rights and risk allocation between parties
6. Duration and Termination: Agreement length, renewal terms, and termination conditions
1. Insurance Requirements: Specific insurance obligations for protecting consigned goods
2. Marketing and Display: Requirements for product display and promotion in retail settings
3. Territory Restrictions: Geographic limitations on sales and distribution
1. Schedule A - Consigned Goods: Detailed list of consigned items with descriptions and prices
2. Schedule B - Commission Structure: Detailed breakdown of commission rates and calculations
3. Schedule C - Operating Procedures: Specific procedures for handling, storing, and selling consigned goods
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