Consignment Agreement

1.	RECITALS

2.	EXCLUSIVE APPOINTMENT

3.	DELIVERY OF MERCHANDISE

4.	SALE OF MERCHANDISE

5.	MONTHLY STATEMENTS; COMPENSATION

6.	MANAGEMENT OF CONSIGNEE’S BUSINESS

7.	TITLE TO MERCHANDISE

8.	EMPLOYEE BENEFIT PAYMENTS

9.	TERMINATION

10.	GOVERNING LAW

11.	NO WAIVER

12.	ARBITRATION OF DISPUTES

13.	ATTORNEY FEES

14.	EFFECT OF PARTIAL INVALIDITY

15.	ENTIRE AGREEMENT

16.	MODIFICATION OF AGREEMENT

17.	PARAGRAPH HEADINGS

18.	COUNTERPARTS

Document Description:

A Consignment Agreement is used when one party (the Principal) provides merchandise to another party (the Consignee) to market and sell. Typically, the Consignee does not assume liability or ownership of the goods and is only remunerated once the goods are sold to a third party. In addition, the Consignee receives the merchandise free of charge: it is not required to make payment to the Principal until the goods are sold.

Selling merchandise by consignment is a unique way of marketing goods, as the consignee does not assume the risk involved in procuring and holding inventory. The Principal generally enters into such an arrangement to save the time and costs associated with selling its merchandise and to benefit from the sales experience and contacts held by the Consignee. A written contract is essential to outline obligations and protect the interests of both parties.