Consignment Agreement

Download: Consignment Agreement

Date:____________________

Definitions:

Consigner is the person or company delivering or committing merchandise
Consignee is the person or company receiving the merchandise for sale

This agreement is between:

CONSIGNER: (Name, Address, and Telephone number):

and

CONSIGNEE: (Name, Address, and Telephone number):

Consigner and Consignee hereby enter into the following Agreement:

Purposes. The CONSIGNER appoints The CONSIGNEE as agent for the merchandise consigned under this Agreement, for the purposes of sale.

Consignment. The CONSIGNER hereby consigns to The CONSIGNEE, and The CONSIGNEE accepts on consignment, those items listed on the attached Inventory Sheet which is a part of this Agreement. Additional Inventory Sheets may be incorporated into this Agreement at such time as both parties agree to the consignment of other works of art. All Inventory Sheets shall be signed by CONSIGNER and CONSIGNEE.

Warranty. The CONSIGNER hereby warrants that he/she created and possesses unencumbered title to the merchandise listed herein.

Duration of Consignment. The CONSIGNER and The CONSIGNEE agree that the initial term of consignment for the merchandise is to be ___________ months, and that the CONSIGNER does not intend to request their return before the end of this term. Thereafter, consignment shall continue until the CONSIGNER requests the return of any or all of the Merchandise or The CONSIGNEE requests that the CONSIGNER take back any or all of the Merchandise with which request the other party shall comply within 30 days.

Transportation Responsibilities. Packing and shipping charges, insurance costs, other handling expenses, and risk of loss or damage incurred in the delivery of Merchandise from the CONSIGNER to The CONSIGNEE are the responsibility of the CONSIGNER. Packing and shipping charges, insurance costs, other handling expenses, and risk of loss or damage incurred in the delivery of Merchandise from The CONSIGNEE to the CONSIGNER, shall be the responsibility of The CONSIGNEE.

Responsibility for Loss or Damage, Insurance Coverage. The CONSIGNEE shall be responsible for the safekeeping of all consigned Merchandise while they are in its custody. The CONSIGNEE shall be strictly liable to the CONSIGNER for their loss or damage (except for damage resulting from flaws inherent in the Merchandise), to the full amount the CONSIGNER would have received from The CONSIGNEE if the Merchandise had been sold. The CONSIGNEE shall provide the CONSIGNER with all relevant information about its insurance coverage for the Merchandise if the CONSIGNER requests this information.

Fiduciary Responsibilities. Title to each of the Merchandise remains with the CONSIGNER until the CONSIGNER has been paid the full amount owing him or her for the Merchandise; title then passes directly to the purchaser. All proceeds from the sale of the Merchandise shall be held in trust for the CONSIGNER. The CONSIGNEE shall pay all amounts due the CONSIGNER before any proceeds of sales can be made available to creditors of The CONSIGNEE.

Both parties have a valid and active Reseller Permits with their states of CONSIGNER is responsible for collecting sales tax and reporting and paying sales tax to their local state/county/city tax districts.

Notice of Consignment. The CONSIGNEE shall give notice, by means of a clear and conspicuous sign in full public view that certain works of art are being sold subject to a contract of consignment.

Removal from CONSIGNEE. The CONSIGNEE shall not lend out, remove from the premises, or sell on approval any of the Merchandise, without first obtaining written permission from the CONSIGNER.

Pricing; CONSIGNEE’s Commission; Terms of Payment. The CONSIGNEE shall sell the Merchandise only at the Retail Price specified on the Inventory Sheet. The CONSIGNEE and the CONSIGNER agree that the CONSIGNEE’s commission is to be ____percent of the Retail Price of the Merchandise. Any change in the Retail Price, or in the CONSIGNEE’s commission, must be agreed to in advance by the CONSIGNER and the CONSIGNEE. Payment to the CONSIGNER shall be made by the CONSIGNEE on the 15th of every month, and will include all commissions due for any/all Merchandise sold. The CONSIGNEE assumes full risk for the failure to pay on the part of any purchaser to whom it has sold Merchandise
.

Promotion. The CONSIGNEE shall use its best efforts to promote the sale of the Merchandise. The CONSIGNEE agrees to provide adequate display of the Merchandise, and to undertake other promotional activities on the CONSIGNER’s behalf.

The CONSIGNEE shall identify clearly all Merchandise with the CONSIGNER’s name, and the CONSIGNER’s name shall be included on the bill of sale of each of the Merchandise.

Accounting. A statement of accounts for all sales of the Merchandise shall be furnished by The CONSIGNEE to the CONSIGNER on the 15th of each month, with the payment of all commissions due. The CONSIGNER shall have the right to inventory his or her Merchandise in the  CONSIGNEE and to inspect any books and records pertaining to sales of the Merchandise

Termination of Agreement. Notwithstanding any other provision of this Agreement, this Agreement may be terminated at any time by either the CONSIGNEE or the CONSIGNER, by giving a sixty (60) day written notification of termination from either party to the other. In the event of the CONSIGNER’s death, the estate of the CONSIGNER shall have the right to terminate the Agreement. Within thirty days of the notification of termination, all accounts shall be settled and all unsold Merchandise shall be returned by The CONSIGNEE.

Procedures for Modification. Amendments to this Agreement must be signed by both CONSIGNER and CONSIGNEE and attached to this Agreement. Both parties must initial any deletions made on this form and any additional provisions written onto it.

Miscellany. This Agreement represents the entire agreement between the CONSIGNER and The CONSIGNEE. If any part of this Agreement is held to be illegal, void, or unenforceable for any reason, such holding shall not affect the validity and enforceability of any other part. A waiver of any breach of any of the provisions of this Agreement shall not be construed as a continuing waiver of other breaches of the same provision or other provisions hereof. This Agreement shall not be assigned, nor shall it inure to the benefit of the successors of The CONSIGNEE, whether by operation of law or otherwise, without the prior written consent of the CONSIGNER. In any proceeding to enforce any part of this contract, the aggrieved party shall be entitled to reasonable attorney’s fees in addition to any available remedy.

Choice of Law. This Agreement shall be governed by the law of the State of ________________, county of ______________.

/s/____________________________________________________(CONSIGNER)
/s/___________________________________________________( CONSIGNEE)

 

Consignment Agreement Merchandise List

CONSIGNER Signiture__________________________________Date__________________

CONSIGNEE Owner____________________________________Date___________________