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Consignment Stock Agreement for Switzerland

Consignment Stock Agreement Template for Switzerland

A Swiss law-governed Consignment Stock Agreement is a specialized commercial contract that establishes an arrangement where goods are delivered to a consignee (typically a retailer or distributor) but remain the property of the consignor (supplier) until sold to end customers. The agreement, regulated under Swiss commercial law including the Code of Obligations, details the terms for storage, handling, and sale of consigned goods, specifying inventory management requirements, payment terms, and risk allocation. It includes provisions for stock reporting, pricing mechanisms, and procedures for unsold goods, while ensuring compliance with Swiss legal requirements regarding property rights, commercial agency, and contractual obligations.

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What is a Consignment Stock Agreement?

The Consignment Stock Agreement is essential for businesses operating under a consignment model in Switzerland, where suppliers want to maintain ownership of goods while placing them at customer locations for sale. This arrangement is particularly valuable for businesses dealing with high-value items, seasonal products, or when testing new markets. The agreement, governed by Swiss law, specifically addresses key aspects such as risk allocation, storage requirements, inventory management, and sales reporting. It provides a framework compliant with Swiss commercial law, particularly the Code of Obligations, while protecting both consignor's ownership rights and consignee's operational needs. The document is crucial for establishing clear procedures for stock management, payment terms, and handling of unsold goods, making it particularly relevant for businesses seeking to optimize inventory management while maintaining control over their products.

What sections should be included in a Consignment Stock Agreement?

1. Parties: Identification of the consignor (supplier) and consignee (distributor/retailer)

2. Background: Context of the agreement and business relationship between the parties

3. Definitions: Key terms used throughout the agreement including 'Consignment Stock', 'Delivery Point', 'Sale Price', etc.

4. Appointment and Scope: Establishment of the consignment relationship and general scope of activities

5. Delivery and Storage: Terms for delivery of goods to consignment location and storage requirements

6. Title and Risk: Provisions clarifying retention of title by consignor until sale and risk allocation

7. Stock Management: Requirements for stock keeping, inventory management, and reporting

8. Sale of Goods: Process and terms for sale of consignment goods to end customers

9. Pricing and Payment: Pricing structure, payment terms, and commission arrangements

10. Insurance: Insurance requirements for consignment stock

11. Representations and Warranties: Standard warranties regarding product quality and parties' authority

12. Term and Termination: Duration of agreement and termination provisions

13. Return of Goods: Process for returning unsold goods upon termination

14. Governing Law and Jurisdiction: Specification of Swiss law and jurisdiction for dispute resolution

What sections are optional to include in a Consignment Stock Agreement?

1. Exclusivity: Used when the consignee is granted exclusive rights in specific territories

2. Minimum Performance Requirements: Include when setting specific sales targets or minimum stock levels

3. Special Storage Requirements: Necessary for goods requiring specific temperature, humidity, or security conditions

4. Marketing and Display: Include when specific requirements exist for product display and marketing

5. Intellectual Property: Required when consignee needs licenses to use consignor's trademarks or patents

6. Data Protection: Include when arrangement involves processing of personal data

7. Force Majeure: Optional but recommended clause for handling unforeseen circumstances

8. Audit Rights: Include when consignor requires specific audit rights beyond standard stock checks

What schedules should be included in a Consignment Stock Agreement?

1. Schedule 1 - Products: List of products covered by the consignment arrangement with specifications

2. Schedule 2 - Pricing Structure: Detailed pricing information, commission rates, and payment terms

3. Schedule 3 - Storage Specifications: Detailed requirements for storage facilities and conditions

4. Schedule 4 - Stock Management Procedures: Detailed procedures for inventory management and reporting

5. Schedule 5 - Service Levels: Performance metrics and service level requirements

6. Appendix A - Reporting Templates: Standard forms for inventory and sales reporting

7. Appendix B - Return Procedures: Detailed procedures for handling returns and damaged goods

8. Appendix C - Insurance Requirements: Specific insurance coverage requirements and minimum values

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

Jurisdiction

Switzerland

Publisher

Genie AI

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions













































Clauses











































Relevant Industries

Manufacturing

Retail

Wholesale Trade

Luxury Goods

Electronics

Automotive Parts

Fashion and Apparel

Industrial Equipment

Medical Devices

Pharmaceuticals

Consumer Goods

Sporting Goods

Agricultural Products

Chemical Products

Relevant Teams

Legal

Supply Chain

Operations

Finance

Sales

Procurement

Logistics

Risk Management

Commercial

Warehouse Operations

Business Development

Inventory Management

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Supply Chain Manager

Inventory Manager

Sales Director

Commercial Director

Operations Manager

Warehouse Manager

Procurement Manager

Legal Counsel

Contract Manager

Business Development Manager

Logistics Manager

Finance Manager

Risk Manager

Retail Operations 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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