FREE 10+ Shop Consignment Contract Samples in MS Word | Google Docs | Apple Pages | PDF

A consignment shop sells used merchandise at prices lower than most retail shops. The income from this type of store is divided between the consignee, who serves as the store owner, and the consignor, who provides the merchandise. If you’re planning to open your consignment shop, you must know how this type of business works. You must also know how to people who can provide the merchandise to provide you the merchandise that you will use to sell in your shop. If you’ve found those people, remember that you are conducting business with them and the first step is to create a contract that signifies you and the other party is engaged in a consignment business. If you don’t know how to make a consignment contract, this article will guide you on how to make one.

1. Information of Both Parties

The first section of the contract must identify every party involved. The information that must be found here are:

• Consignee’s name, address of their store, and contact information
• Consignor’s name, personal address, and contact information

2. Merchandise Details

This section must declare all important details regarding the merchandise to be sold and the conditions and types that are admissable enough to sell. Also, state what quality control guidelines will be used to inspect the overall quality of the merchandise.

3. Pricing

This section should establish that the consignee will set its pricing based on the merchandise it gets. To be specific, you must describe how the pricing will be calculated by considering the following attributes of the merchandise such as its age, brand, condition, market demand, and style.

4. Consignment Terms

This part of the contract should discuss the period in which the consignee will sell the merchandise. You will also state how the consignee will make the pricing arrangements and strategically schedule marking down the remaining merchandise that wasn’t sold.

5. Payment Structure

Identify the accurate percentage of commission that the consignee will receive based on the sale of merchandise. It’s up to your agreement on how you will split the commission. Will you evenly split it? Will you retain 70% of the sales revenue and pay the consignee the remaining 30%?

6. Expenses and Ownership

This section must state what types of expenses is the consignee is responsible to pay for such as if there are any lost or damaged items, the consignee is assigned to pay for them while those items are in their possession.

7. Insurance

This section must point out any insurance details regarding the consigned merchandise. For example, the consignee is the one responsible to carry out the insurance of the consigned item.

8. Termination of the Contract

This section must discuss how the contract can be terminated. Describe the situations or events that will void the contract.

9. Signature Lines

Conclude the contract by including signature lines where both parties can sign the contract with the date which signifies that the contract is legally binding and all provisions and terms discusses and agreed upon will officially take into effect.