When some other person is selling goods on your behalf, you need to sign a consignment agreement with him to avoid any legal pitfalls. A consignment Agreement is documented when the “consignor” allows the “consignee” the authority to sell stock belonging to the consignor. A consignment Agreement specifies the selling of a particular stock or merchandise.
The agreement includes:
- The site where the merchandise is sold.
- Payments and accounting issues after the sale.
- Consignee’s commission.
- Legal rights of the consignor to have unsold items.
- Autonomous status of the consignee.
The consignment agreement document is used when:
- You are the person who wants to sell items for others.
- You need somebody to sell your own merchandise.
The Agreement will feature the particulars, like the commission rate and the exact time period of selling the goods with the terms and conditions if no sale has been carried out.
The payment will flow in the following manner
- The consignee keeps the percentage.
- The remaining balance belongs to the consignor.
If anybody fails to stand by the obligations of this Agreement, like become a defaulter of payment, the consignor has the option to cancel this agreement by providing the consignee some warning duration.
The formal consignment agreement is a malleable document that provides a variety of un-compelled text customization. There are many templates available on free websites to customize the consignment agreement just according to your specification. The downloaded form has to be filled with your data and get it printed for signatures.
Microsoft Word document file | File size 47 KB | Download