sales-documents-and-forms
Consignment Agreement Template
Use our free Consignment Agreement template to set clear terms for selling goods on consignment. Customize product details, commission, payment timing, and return rules—then download and print instantly.
CONSIGNMENT AGREEMENT TEMPLATE FAQ
What is a consignment agreement?
A consignment agreement is a contract where an owner of goods (the “Consignor”) gives items to another party (the “Consignee”) to sell on the Consignor’s behalf. The Consignee sells the items to customers, keeps an agreed commission or fee, and pays the remaining proceeds to the Consignor under the timeline and rules in the agreement.
How is consignment different from a normal sale?
In a normal sale, ownership transfers to the buyer right away. In consignment, the Consignor usually keeps ownership until the goods are sold to a customer. This matters for risk, insurance, pricing control, taxes, and what happens if goods are damaged, lost, or not sold.
What should be included in a consignment agreement?
A good agreement identifies the parties, describes the goods, sets the consignment term, pricing and discount rules, commission structure, who pays shipping and marketing costs, how and when the Consignee reports sales and pays the Consignor, how returns/refunds are handled, and what happens to unsold items at the end of the term.
Who sets the price and can the consignee discount items?
Usually the Consignor sets the minimum price and approves discount rules, while the Consignee manages day-to-day sales. This agreement lets you clearly define whether discounts are allowed, how deep they can be, and whether the Consignee can run promotions without advance written approval.
When and how does the consignor get paid?
Payment timing is typically tied to a reporting cycle (for example, weekly or monthly). The Consignee provides a sales report, subtracts the agreed commission and approved expenses, and remits the balance to the Consignor by the due date using the payment method listed in the agreement.
What is AI Lawyer?
AI Lawyer is an AI-powered assistant that helps you create and customize legal and business document templates online. It guides you through key sections, suggests wording, and explains complex concepts in simple language. AI Lawyer does not replace a licensed attorney or provide legal advice, but helps you prepare better documents faster and more confidently.