Form: Explanation:
Consignment Agreement This is a form of consignment agreement, where one party (the “Seller”) provides goods to another party (the “Company”) for sale by that Company. The Seller gets paid only after the Company has sold the goods to an end consumer purchaser. The form of this agreement tends to be pro-Seller oriented.
Form 8.18
CONSIGNMENT AGREEMENT This agreement is made by and between [NAME OF SELLER] (“Seller”) and [COMPANY] (“Company”). WHEREAS Seller wishes to sell those items described in Exhibit A attached hereto (the “Goods”) by consigning said Goods to Company for sale; and WHEREAS, Company wishes to attempt to sell the Goods through its own sales efforts; THEREFORE, the parties agree as follows: 1. Company’s Obligations
(a) Pricing. Company will make commercially reasonable efforts to obtain the highest reasonable possible price for the Goods and, in any event, will accept no less than the minimum price set forth in Exhibit A as the minimum sale price for the Goods. (b) Display. Company agrees to display the Goods in a prominent place at Company’s primary business location during normal business hours. (c) Insurance. Seller maintains and will maintain adequate insurance for theft and damage, sufficient to protect the Goods while in Company’s possession. 2. Payment to Company. Company will be entitled to retain ____% of the sale price for all Goods sold pursuant to this Agreement (the “Commission”). Within ten (10) days after completion of a sale, Company shall forward a check for the amount of the full sale price, payable to Seller, less the Commission earned by Company, to Seller at the address set forth for Seller on the signature line hereof. 3. Consignment Period. The consignment period begins upon delivery of the Goods to Company and will terminate on [DATE], unless sooner terminated by Seller upon three (3) days notice to Company (the “Consignment Period”). 4. Seller’s Obligations to Company.
(a) Delivery of Goods. Seller will deliver or arrange for the delivery of the Goods to Company by [DATE], with all shipping and handling charges to be paid by Seller. Company will not be held responsible for loss or damage to the Goods prior to delivery. (b) Return of Goods. All Goods remaining unsold by the end of the Consignment Period will be returned by Company to Seller, with all shipping and handling charges to be paid by Seller. The remaining unsold Goods shall be received by Company within seven (7) days after the end of the Consignment Period.
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5.
Disclaimers and Warranty.
(a) Encumbrances. Seller warrants that the Goods are now free, and that at the time of delivery shall be free, from any security interest, lien or other encumbrance. Seller warrants that at the time of signing this Agreement, Seller neither knows nor has reason to know of the existence of any outstanding title or claim of title hostile to the rights of Seller in the Goods. (b) Material Defects. Seller warrants that, at the time of delivery, to the Seller’s knowledge, the Goods will be free from material defects in materials and workmanship. Company shall have the right and obligation to inspect the Goods on arrival and, within three (3) days of receipt,