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Consignment Form for United Arab Emirates

Consignment Form Template for United Arab Emirates

A UAE Consignment Form is a legal document that establishes the terms and conditions under which one party (the consignor) places goods in the possession of another party (the consignee) for the purpose of sale. Governed by UAE Federal Law No. 18 of 1993 (Commercial Transactions Law) and related regulations, this document outlines the responsibilities of both parties, commission structures, handling of goods, reporting requirements, and risk allocation. It provides a comprehensive framework for consignment arrangements while ensuring compliance with UAE commercial law and business practices.

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What is a Consignment Form?

The Consignment Form is essential for businesses operating in the UAE that engage in consignment-based trading arrangements. This document is particularly relevant when one party wishes to place goods in the possession of another party for sale without transferring ownership until the actual sale occurs. The form must comply with UAE Federal Law No. 18 of 1993 (Commercial Transactions Law) and related regulations, making it suitable for various commercial scenarios from retail consignment to industrial equipment placement. The document typically includes detailed terms regarding delivery, storage, commission rates, reporting requirements, and risk allocation, providing a clear framework for both consignor and consignee while ensuring legal compliance in the UAE jurisdiction.

What sections should be included in a Consignment Form?

1. Parties: Identification of the Consignor and Consignee with full legal names, addresses, and registration details

2. Background: Brief context of the consignment arrangement and the business relationship between the parties

3. Definitions: Key terms used throughout the agreement including 'Consigned Goods', 'Consignment Period', 'Commission Rate', etc.

4. Consignment Terms: Core terms including description of goods, consignment period, and pricing structure

5. Delivery and Storage: Terms regarding the delivery, storage, and handling of consigned goods

6. Commission Structure: Details of commission rates, calculation methods, and payment terms

7. Title and Risk: Provisions regarding ownership of goods and risk allocation during the consignment period

8. Obligations of Consignor: Responsibilities and warranties of the party providing the goods

9. Obligations of Consignee: Responsibilities including storage, care, sales efforts, and reporting

10. Reporting and Accounting: Requirements for sales reporting, inventory management, and financial accounting

11. Term and Termination: Duration of the agreement and circumstances for termination

12. Governing Law and Jurisdiction: Specification of UAE law as governing law and jurisdiction for disputes

What sections are optional to include in a Consignment Form?

1. Insurance: Required when specific insurance arrangements need to be detailed, particularly for high-value goods

2. Exclusivity: Include when the consignee is granted exclusive rights to sell in specific territories

3. Marketing and Display: Include when specific requirements exist for how goods should be marketed or displayed

4. Return of Goods: Include when specific procedures for returning unsold goods need to be detailed

5. Confidentiality: Include when sensitive business information will be shared between parties

6. Force Majeure: Include when specific events need to be identified that would excuse performance

7. Assignment: Include when transfer rights need to be specifically addressed

What schedules should be included in a Consignment Form?

1. Schedule 1 - Consigned Goods: Detailed list of consigned goods including descriptions, quantities, and agreed prices

2. Schedule 2 - Commission Rates: Detailed breakdown of commission rates for different product categories or sales thresholds

3. Schedule 3 - Storage Requirements: Specific requirements for storage conditions, handling, and maintenance of goods

4. Schedule 4 - Reporting Templates: Standard forms for inventory reports, sales reports, and financial statements

5. Appendix A - Operating Procedures: Detailed procedures for handling, selling, and managing consigned goods

6. Appendix B - Territory Map: If applicable, map or description of authorized sales territory

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Publisher

Genie AI

Document Type

Sales Agreement

Sector

Sales

Cost

Free to use
Relevant legal definitions



































Clauses






























Relevant Industries

Retail

Wholesale Trade

Luxury Goods

Fashion and Accessories

Art and Antiques

Electronics

Automotive Parts

Industrial Equipment

Consumer Goods

Jewelry and Precious Metals

Relevant Teams

Legal

Commercial Operations

Sales

Supply Chain

Finance

Procurement

Compliance

Warehouse Operations

Contract Administration

Risk Management

Relevant Roles

Commercial Director

Sales Manager

Retail Operations Manager

Supply Chain Manager

Legal Counsel

Procurement Manager

Business Development Manager

Finance Manager

Inventory Manager

Compliance Officer

Contract Administrator

Warehouse Manager

Industries





Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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