Free Consignment Agreement Template

CONSIGNMENT AGREEMENT This Consignment Agreement (the “Agreement”) is entered into as of [Effective Date] (the “Effective Date”), BETWEEN: [Consignor Name], with a mailing address at [Consignor Address] (the “Consignor”); AND [Consignee Name], with a principal place of business at [Consignee Address] (the “Consignee”). The Consignor and the Consignee may be referred to individually as a “Party” and collectively as the “Parties.” 1. CONSIGNMENT OF ITEMS The Consignor delivers to the Consignee, and the Consignee accepts on consignment, the goods described in [Consigned Items Schedule] (the “Items”), which forms part of this Agreement. The schedule lists each Item with a description, condition, quantity and agreed price. The Consignee will offer the Items for sale at [Store Location] and through any additional channels approved in writing by the Consignor. 2. OWNERSHIP AND TITLE The Consignor retains full ownership of and title to each Item until the Item is sold to a buyer and paid for. The Consignee acts only as the Consignor’s sales agent and may not pledge, lend, rent, use or encumber the Items. The Consignee will keep the Items identifiable as consigned goods in its inventory records and will not treat them as its own stock. 3. PRICING AND MARKDOWNS Each Item will be offered at the price stated in the schedule. The Consignee may not sell an Item below [Minimum Sale Price] without the Consignor’s prior written approval. Unsold Items may be reduced in price according to [Markdown Schedule]. Any other price change requires written consent, which may be given by email. 4. COMMISSION SPLIT For each Item sold, the Consignor will receive [Consignor Share Percentage] and the Consignee will retain [Consignee Commission Percentage] of the net sale price as its full compensation. Net sale price means the price paid by the buyer, excluding sales tax or VAT collected by the Consignee, refunds and approved card processing fees. No other fees will be deducted unless listed in the schedule. 5. SALES REPORTS AND PAYMENT The Consignee will keep accurate records of all sales and provide the Consignor with a written sales report. The Consignee will pay the Consignor’s share [Payment Timing] by [Payment Method]. The Consignee holds sale proceeds belonging to the Consignor in trust until paid. The Consignor may review the related sales records on reasonable notice. 6. CONSIGNMENT PERIOD The Items will remain on consignment for [Consignment Period] starting on the Effective Date (the “Consignment Period”). The Parties may extend the Consignment Period for some or all Items by written agreement. 7. UNSOLD ITEMS: RETURN OR DONATION At the end of the Consignment Period, the Consignee will notify the Consignor of any unsold Items. The Consignor must collect unsold Items within [Unsold Item Pickup Period] after notice. If the Consignor does not collect them in that time, the Consignee may [Unclaimed Items Option], to the extent permitted by applicable law, after a final written reminder. The Consignor may withdraw unsold Items at any time on reasonable notice. 8. DISPLAY, MARKETING AND CARE The Consignee will display the Items in a reasonable and professional manner, handle them with care, and may photograph and advertise them in store, online and on social media. The Consignee will not alter, repair or clean Items beyond ordinary handling without the Consignor’s consent. 9. RISK OF LOSS, DAMAGE AND INSURANCE While the Items are in the Consignee’s possession, the Consignee is responsible for loss, theft or damage caused by its negligence or failure to secure the premises, and will compensate the Consignor at the Consignor’s share of the scheduled price. The Consignee will maintain [Insurance Coverage]. Normal wear from display and loss caused by events beyond the Consignee’s reasonable control are excluded unless covered by that insurance. 10. CONSIGNOR REPRESENTATIONS The Consignor represents that it owns the Items or has the right to sell them, that the Items are free of liens and claims, that they are not stolen, counterfeit or recalled, and that the descriptions provided are accurate. The Consignor is responsible for any claims arising from a breach of these representations. 11. TERMINATION Either Party may terminate this Agreement with [Termination Notice Period] written notice. Upon termination, the Consignee will pay all amounts due for Items sold before termination and make unsold Items available for collection under Section 7. 12. GOVERNING LAW This Agreement is governed by the laws of [Governing Law / Jurisdiction], without regard to conflict-of-law principles. The courts located in [Governing Law / Jurisdiction] will have jurisdiction over disputes arising out of or relating to this Agreement, unless the Parties agree in writing to try mediation first. 13. GENERAL PROVISIONS (a) Entire Agreement. This Agreement, including the Items schedule, constitutes the entire agreement between the Parties concerning its subject matter and supersedes prior agreements on that subject. (b) Amendments. Modifications must be in writing and signed by both Parties. (c) Severability. If any provision is held unenforceable, the remaining provisions remain in effect. (d) Independent Parties. The Consignee is an independent business and not a partner, employee or joint venturer of the Consignor. (e) Counterparts and Electronic Signatures. This Agreement may be executed in counterparts, including by electronic signatures, each of which will be deemed an original. IN WITNESS WHEREOF, the Parties have executed this Consignment Agreement as of the Effective Date. CONSIGNOR Name: [Consignor Name] Signature: _______________________________ Date: ____________________________________ CONSIGNEE Name: [Consignee Name] Signature: _______________________________ Name of Signatory: _______________________ Title: ___________________________________ Date: ____________________________________