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Consignment Form for Malaysia

Consignment Form Template for Malaysia

A comprehensive legal document governed by Malaysian law that establishes and regulates a consignment arrangement between a consignor (owner of goods) and a consignee (seller). The document outlines the terms and conditions for the possession, display, and sale of consigned goods, including commission structures, payment terms, and risk allocation. It incorporates relevant provisions from Malaysian commercial law, particularly the Contracts Act 1950 and Sale of Goods Act 1957, while establishing clear procedures for inventory management, reporting, and settlement of accounts.

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What is a Consignment Form?

The Consignment Form serves as a crucial legal instrument in Malaysian commercial transactions where one party (consignor) entrusts their goods to another party (consignee) for sale while retaining ownership until the final sale occurs. This document type is particularly important in retail, wholesale, and distribution businesses where inventory management and sales tracking are critical. The agreement must comply with Malaysian commercial law requirements, including the Contracts Act 1950 and Sale of Goods Act 1957, while clearly defining the rights, obligations, and commercial terms between parties. A well-structured Consignment Form should address key aspects such as pricing, commission rates, payment terms, inventory management, reporting requirements, and risk allocation, providing a comprehensive framework for the consignment relationship.

What sections should be included in a Consignment Form?

1. Parties: Identification of the Consignor and Consignee with complete business details

2. Background: Context of the consignment arrangement and brief description of the business relationship

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

4. Appointment: Formal appointment of the Consignee and scope of authority

5. Consignment Terms: Core terms including delivery, storage, and handling of consigned goods

6. Pricing and Commission: Agreed pricing structure and commission rates for sold goods

7. Payment Terms: Terms for remittance of sales proceeds and commission payments

8. Title and Risk: Clarification that title remains with Consignor until sale, and allocation of risk

9. Responsibilities of Parties: Detailed obligations of both Consignor and Consignee

10. Record Keeping: Requirements for inventory management and sales recording

11. Term and Termination: Duration of the agreement and termination provisions

12. Governing Law: Specification of Malaysian law as governing law

13. Execution: Signature blocks and execution details

What sections are optional to include in a Consignment Form?

1. Insurance: Required for high-value goods or when specific insurance arrangements are needed

2. Marketing and Display: Include when specific requirements exist for product display and promotion

3. Returns and Recalls: Necessary when dealing with consumer goods or products with warranty

4. Intellectual Property: Include when branding or trademark usage is involved

5. Confidentiality: Required when sensitive business information is shared

6. Force Majeure: Include when additional protection against unforeseen events is needed

7. Dispute Resolution: Optional detailed provisions for handling disputes, including mediation or arbitration

What schedules should be included in a Consignment Form?

1. Schedule 1: List of Consigned Goods: Detailed inventory of goods with descriptions, quantities, and values

2. Schedule 2: Commission Structure: Detailed breakdown of commission rates, including any variations based on product categories or sales volumes

3. Schedule 3: Operating Procedures: Specific procedures for handling, storage, and sales reporting

4. Schedule 4: Return Policy: Detailed procedures for handling returns and damaged goods

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

6. Appendix B: Quality Standards: Specific requirements for maintenance and handling of goods

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

Malaysia

Publisher

Genie AI

Document Type

Sale Agreement

Cost

Free to use
Relevant legal definitions





























Clauses






























Relevant Industries

Retail

Manufacturing

Fashion and Apparel

Electronics

Luxury Goods

Automotive Parts

Furniture and Home Goods

Jewelry

Books and Publications

Art and Collectibles

Consumer Goods

Agricultural Products

Relevant Teams

Legal

Commercial

Operations

Finance

Supply Chain

Procurement

Sales

Inventory Management

Logistics

Compliance

Risk Management

Business Development

Relevant Roles

Commercial Director

Retail Operations Manager

Supply Chain Manager

Inventory Control Manager

Sales Director

Legal Counsel

Finance Manager

Procurement Manager

Business Development Manager

Warehouse Manager

Logistics Coordinator

Compliance Officer

Account Manager

Contract Administrator

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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