05 Dec, 2024
A well-structured consignment contract is essential. It provides clarity and security for both parties — for you as a business owner and for your consignors. Our template helps you quickly and easily set up a contract. Additionally, we’ve summarized the key points below so you can get started right away.
Consignment contract & terms and conditions
Consignee: [Your Business Name]
Address: [Street, ZIP/City]
Email: [Email Address]
Phone: [Phone Number]
Consignor:
Name: ____________________
Street: ____________________
ZIP/City: ___________________
Email: ____________________
Phone: ___________________
General Provisions:
[Your business name] allows individuals to sell goods as consignment items. This contract and the accompanying item list form the basis of our business relationship. No liability can be accepted for loss or damage caused by theft, fire, force majeure, or other damage (e.g., during fitting).
Goods Acceptance:
Goods are accepted by prior appointment. All items are recorded in an item list and assigned a sales price. If the consignor does not provide a suggested price, the consignee will determine the selling price at their discretion and based on their experience. We only accept functional, undamaged, clean, washed, odor-free branded goods that match current trends and seasons. Fast fashion or discount store items are not accepted. If the clothing is also ironed, it’s particularly appreciated as it makes the items easier to sell. By signing this contract, the consignor confirms that the consigned goods are their property and not counterfeit products (fake). The goods do not become the property of the consignee; the consignee is only authorized to sell the goods provided to them.
Compensation:
The consignor receives [xx]% of the gross sales price. A processing fee of [amount] will be deducted from the payout. We reserve the right to reduce the price of the items depending on demand. This also applies to defects, damages, and contamination that were not visible when the goods were handed over. The consignee is responsible for remitting the statutory sales tax on the sales proceeds. The consignor’s share of the payout is made at the end of the contract term; payouts during the contract period are made on a goodwill basis. All payout claims under this contract expire 12 months after the agreed storage period has ended.
Consignment Period:
The goods are consigned for [x] months. Unsold goods must be collected within 4 weeks after the end of the consignment period. Goods not collected within this period automatically become the property of the consignee and will be donated or disposed of.
Data Protection:
The consignor agrees that their data will be electronically stored and used solely for internal purposes. Should any provision of this contract be invalid, ineffective, or incomplete, the validity of the other provisions remains unaffected.
By signing, you acknowledge the consignment contract and its terms and conditions.
__________________________
Date and Location
__________________________
Signature of Consignee
__________________________
Signature of Consignor
Key aspects of the consignment contract
Definition of Contract Parties:
Clearly identifying yourself as the consignee and your consignors helps establish each party's role in the business relationship. Providing email addresses and phone numbers is not only important for documentation but also facilitates communication.
Acceptance of Goods:
By setting clear rules for the acceptance of goods and creating an item list, you ensure organization and transparency. This also guarantees that only items meeting specific quality standards (like brand and condition) are accepted, saving you time and effort while improving efficiency.
Pricing:
Allowing yourself to set the sales price if consignors don’t suggest one gives you the flexibility to price items based on your experience and the current market value. Additionally, the provision to adjust prices based on demand or discovered defects ensures fair pricing and competitiveness.
Compensation and Fees:
A clear division of sales proceeds and the deduction of a processing fee create transparency. If you need to adjust prices, everyone understands the reasoning, which maintains trust. The regulation on sales tax demonstrates that you’re mindful of legal requirements.
Consignment Period and Post-Term Actions:
By setting a fixed consignment period and outlining what happens to uncollected items, you retain control over your inventory. This makes it easier to create space for new items while also promoting social responsibility through donation or disposal of unclaimed goods.
Liability for Loss or Damage:
Clarifying what happens if goods are stolen or damaged protects you from unexpected risks. It’s essential for both parties to understand under which circumstances you are not liable, offering security for all involved.
Data Protection:
Informing consignors that their data is stored securely and used only internally builds trust. Since data protection is a significant concern, this measure shows that you take it seriously.
Contract Provisions for Security:
The Salvatorian Clause ensures that even if one part of the contract becomes invalid, the rest remains legally binding. The statute of limitations for payout claims encourages the timely settlement of financial matters, reducing administrative burdens.