The Consignment Agreement Form is a crucial document used in Canadian business operations where one party wishes to sell goods through another party without transferring ownership until the final sale. This arrangement is particularly common in retail, art galleries, fashion, and specialty stores. The agreement serves to protect both parties' interests by clearly defining the consignment relationship, payment terms, and operational procedures. The document must comply with Canadian federal and provincial legislation, including the Personal Property Security Act (PPSA), provincial Sale of Goods Acts, and relevant consumer protection laws. Typically, the Consignment Agreement Form includes detailed provisions for inventory management, commission structures, reporting requirements, risk allocation, and the handling of unsold goods. This type of agreement is especially valuable for businesses looking to expand their product offerings without significant inventory investment and for suppliers seeking to reach new markets through established retail channels.
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1. Parties: Identifies and provides full legal details of the consignor and consignee
2. Background: Explains the context and purpose of the consignment arrangement
3. Definitions: Defines key terms used throughout the agreement
4. Consignment Terms: Outlines the basic terms of the consignment arrangement, including duration and territory
5. Delivery and Acceptance: Details the process for delivering goods and accepting them into consignment
6. Pricing and Commission: Specifies the pricing structure, commission rates, and payment terms
7. Title and Risk: Clarifies that title remains with consignor while goods are in consignee's possession
8. Responsibilities of Consignee: Details the consignee's obligations regarding storage, display, and sale of goods
9. Responsibilities of Consignor: Outlines the consignor's obligations regarding product quality, delivery, and support
10. Reporting and Accounting: Specifies requirements for sales reporting, inventory tracking, and financial accounting
11. Payment Terms: Details the process and timing of payments between parties
12. Term and Termination: Specifies the duration of the agreement and conditions for termination
13. Return of Goods: Procedures for returning unsold goods to the consignor
14. General Provisions: Standard legal provisions including governing law, notices, and amendments
1. Insurance Requirements: Detailed insurance obligations - include when high-value goods are involved
2. Marketing and Promotion: Specific requirements for promoting the consigned goods - include for retail arrangements
3. Exclusivity: Terms of exclusive dealing arrangements - include when exclusivity is part of the business arrangement
4. Minimum Performance Requirements: Sales targets or minimum performance standards - include for performance-based arrangements
5. Online Sales: Provisions for online sale of consigned goods - include for e-commerce arrangements
6. Quality Control: Specific quality maintenance requirements - include for perishable or sensitive goods
7. Intellectual Property: IP rights and usage terms - include when branded or protected goods are involved
8. Security Interest: PPSA registration and security requirements - include for high-value consignments
1. Schedule A - Consigned Goods: Detailed list of goods placed on consignment, including descriptions and quantities
2. Schedule B - Pricing Schedule: Detailed pricing structure, including retail prices and commission rates
3. Schedule C - Operating Procedures: Specific procedures for handling, storing, and selling consigned goods
4. Schedule D - Reporting Templates: Standard forms for inventory and sales reporting
5. Schedule E - Territory Definition: Detailed description of the geographic territory covered by the agreement
6. Appendix 1 - Insurance Requirements: Detailed insurance specifications and coverage requirements
7. Appendix 2 - Quality Standards: Specific quality standards and maintenance requirements for the goods
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