Generated Agreement Result
The live agreement updates as you edit the form.
Example Consignment Calculation
This example shows how a simple item settlement may appear.
| Item | Sale Price | Commission | Other Fees | Net to Consignor |
|---|---|---|---|---|
| Designer handbag | $500.00 | $100.00 | $15.00 | $385.00 |
| Vintage watch | $800.00 | $160.00 | $20.00 | $620.00 |
| Art print | $250.00 | $50.00 | $10.00 | $190.00 |
Understanding Consignment Agreements
A consignment agreement explains how one party places goods with another party for sale. The owner is usually called the consignor. The seller or shop is usually called the consignee. Ownership commonly stays with the consignor until a completed sale occurs. Clear terms reduce confusion about price control and payment timing. They also explain who handles customer questions, returns, and discounts. A useful agreement identifies both parties and every consigned item. It should record descriptions, quantities, conditions, and agreed selling prices. Minimum prices can protect the consignor from unexpected discounting. Commission terms should state whether fees use percentages or flat amounts. The payment section should explain when proceeds become due. It should also show permitted deductions before settlement.
Important Clauses to Review
Risk allocation deserves careful attention in every consignment arrangement. The agreement should address theft, accidental damage, storage, and insurance. Return rules matter when a buyer later rejects an item. The parties should decide who absorbs refunds and transaction costs. Unsold goods also need a documented process. Some agreements require return after a fixed consignment period. Others allow extensions when both parties approve them. Expenses should be listed before goods enter the consignee's possession. Common charges include shipping, repairs, cleaning, authentication, and advertising. Tax responsibility may differ by country, state, or business structure. Each party should confirm local requirements before signing.
Using This Generator
Enter party information first, then add each consigned item. Choose commission terms that match the commercial arrangement. Set pricing authority, discount limits, and payment timing clearly. Review responsibility for returns, insurance, losses, and unsold inventory. Add any special terms that matter for the transaction. The preview updates while the form is being completed. Download CSV data for records or spreadsheet analysis. Use the PDF button for a printable agreement copy. Both parties should review every clause before signing. Independent legal advice may be appropriate for valuable goods. Keep signed copies with all later settlement records. Clear documentation helps both parties manage consignment transactions confidently.
Frequently Asked Questions
Who owns goods during consignment?
The consignor commonly retains ownership until the goods are sold, unless the agreement states otherwise.
How is commission calculated?
Commission may be a percentage of the selling price or a flat amount, depending on the selected terms.
What happens to unsold goods?
The agreement can require return, extension, donation with approval, or another documented process.
Who is responsible for damaged goods?
Responsibility depends on the contract. The generator includes fields for loss, damage, and insurance responsibility.
Can the consignee discount items?
Only within the authority granted by the agreement. You can require approval or set a discount limit.
Is this agreement legally binding?
A signed agreement may create legal obligations, but enforceability depends on applicable law and circumstances. Consider professional legal review when needed.