The Simple Consignment Agreement is designed for use in Australian business contexts where parties wish to establish a consignment sales arrangement. This document is particularly valuable when a business owner wants to place their goods with a retailer or seller without transferring ownership until the actual sale occurs. The agreement encompasses essential elements required under Australian law, including provisions compliant with the Competition and Consumer Act 2010 and state-specific commercial regulations. It's commonly used in retail, art galleries, automotive parts, and various other sectors where consignment arrangements are prevalent. The Simple Consignment Agreement includes detailed terms covering commission rates, payment procedures, handling requirements, and reporting obligations, while clearly establishing the rights and responsibilities of both consignor and consignee. This document is essential for protecting both parties' interests and ensuring clear communication of expectations in a consignment relationship.
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1. Parties: Identifies and provides full details of the consignor and consignee
2. Background: Explains the context of the agreement and the parties' intentions
3. Definitions: Defines key terms used throughout the agreement
4. Appointment and Scope: Establishes the consignment relationship and its basic terms
5. Ownership and Risk: Clarifies that ownership remains with consignor and specifies risk allocation
6. Consignment Process: Details the process for delivery, storage, and handling of consigned goods
7. Pricing and Commission: Specifies the pricing structure and commission rates
8. Payment Terms: Outlines payment procedures, timing, and methods
9. Obligations of Consignee: Lists the consignee's responsibilities including storage, display, and sales
10. Obligations of Consignor: Details the consignor's responsibilities including product quality and delivery
11. Reporting Requirements: Specifies required reports, frequency, and content
12. Term and Termination: States the agreement duration and termination provisions
13. General Provisions: Standard legal provisions including governing law, notices, and assignment
1. Insurance: Required when specific insurance arrangements need to be detailed
2. Marketing and Display: Include when specific marketing or display requirements are needed
3. Returns and Recalls: Include for products that may require return or recall procedures
4. Intellectual Property: Include when branded products or IP rights need protection
5. Exclusivity: Include when territorial or product exclusivity is granted
6. Minimum Performance Requirements: Include when setting specific sales targets or performance metrics
7. Data Protection: Include when personal data processing is involved
8. Force Majeure: Include when specific force majeure provisions are required beyond standard terms
1. Schedule 1 - Consigned Goods: Detailed list and description of consigned products
2. Schedule 2 - Commission Rates: Detailed breakdown of commission rates by product category
3. Schedule 3 - Operating Procedures: Specific procedures for handling, storing, and selling consigned goods
4. Schedule 4 - Reporting Template: Template for required sales and inventory reports
5. Schedule 5 - Territory: Definition of geographical area covered by the agreement
6. Appendix A - Storage Requirements: Specific requirements for storage and handling of goods
7. Appendix B - Quality Standards: Required quality standards and inspection procedures
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