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Consignment Agreement basics

If you want someone to sell something on your behalf, a Consignment Agreement puts it in writing. A Consignment Agreement grants a person (known as the "consignee") the right to sell certain merchandise owned by the "consignor." A Consignment Agreement is a useful way to establish how the sale of merchandise will work.


How do I write a Consignment Agreement?


Making a Consignment Agreement online is simple using the Rocket Lawyer Consignment Agreement document builder. You will answer a few questions, and a customized document will be created just for you. You may want to review these questions before you start your document:

  • Will sales under this Agreement be restricted to a specific geographical area?
  • Who will determine the sales prices and terms?
  • What percentage of the sales proceeds will the Consignor receive?
  • Will the Consignee be required to keep sales records and allow the Consignor to inspect them?

Don't have time to finish your document now? No problem. You can save it and complete it later.


What should be included in a Consignment Contract?


A Consignment Contract, or Consignment Agreement, will typically cover the following details:

  • Information about the parties
  • Merchandise to be consigned
  • Pricing and payment
  • Insurance
  • Termination

Consult an attorney if your situation presents unusual or more complicated circumstances.


What are consignment payment terms?


Consignment payment terms define how and when payments will be made to the consignor. The payment terms can include how payments will be made, the frequency of payments, and what day of each payment period will payments be due.


What is the typical consignment split?


The answer to this question depends on factors such as the store's overhead, the value of the item(s), clientele, etc. On a high level, the typical consignment split allocates 60% of the sales proceeds to the consignor and 40% to the consignee.


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Sample Consignment Agreement

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