Consignment Agreement Templates

World is changing everyday and with it, buying and selling behavior of people is also changing. Online shopping is a big hit these days and no matter how many websites sell stuff online, there is always room for more. From the point of view of a buyer, online shopping might not be reliable all the time but it’s convenient for sure. With online shopping, a new trend is emerging where people give authority of selling their goods and stuff to an online shopping place and don’t take part in the process other than providing the salable items. When two parties agree to do this business where one is responsible for providing the goods and the other one has the job to sell them, there is usually an agreement signed by both parties. This agreement ensures that legal rights of both parties are safe and they perform their duties and responsibilities. This contract is commonly known as a consignment agreement.

The key purpose of a consignment agreement is to secure rights of all parties involved in the business. Just like any other business, this is also a partnership involving two or more parties which means sooner or later, there is going to be a problem which can be easily mediated in presence of the consignment agreement. This agreement also lets the consignee sell the products legally that he got from the consignor. From the business point of view and corporate laws, it’s illegal to sell something if you don’t have the permission from the manufacturer or owner. A consignment agreement is the legal document that gives this permission to the consignee for selling, reselling and exchanging the goods on behalf of the producer.

Free Consignment Agreement Templates

Here are some Consignment Agreement Templates to download.


Here are some guidelines for preparing a consignment agreement:

  1. Introduce all involved partners:
    This is the beginning of the agreement and it’s the part where you are supposed to enter details of each involve partner. This portion should include full name, address and contact info of the party who will provide the goods and will allow the other party to sell them or advertise them in the market. It also includes the full details of 2nd party who will be responsible of actually selling the goods. From this point onward, first party will be known as consignor and 2nd party will be referred to as consignee.
  2. Salable Commodity Details:
    This is the body of the agreement that has all the crucial details of items or goods that will be sold by the consignee. This part will start with statement regarding nature and purpose of the agreement i.e. to sell clothes. Then it’s time to include full description of each of the item that the consigner is allowing the consignee to sell either online or in a shop. This portion will also clarify and confirm retail price of each item, how many items will be provided by the manufacturer and what’s going to be quantity of each scheduled delivery. If necessary, the producer can add the timeline in which the consignee is required to sell or return the products.
  3. Dates and duration of agreement:
    It’s important to draft and sign the agreement before conducting any business so either party doesn’t face any legal difficulty or problem afterwards. Throughout the agreement, make sure to mention clear dates i.e. when both parties decided to do business together, the date on which they signed the contract and most importantly, the duration for which this agreement will be considered authenticated. Usually the duration is set to 3 months to 6 months but you can extend it to as long as you wish.
  4. Advertisement and marketing:
    Either the consignee has a store where he sells the goods or an online shopping platform, it’s important for both of them to understand that consignee’s responsibility doesn’t end with just receiving the products and keeping them at his store as the consignor should mention it clearly in the agreement that the consignee has to do some efforts or positive advertisement for checking full potential of the items. This part can also indicate the nature of the advertisement and how the marketing should appear in front of the consumers.
  5. Payment and return of products:
    At this moment you have included almost every little detail in the agreement except what will happen if some products are not sold in the mentioned time period, how the consignee is going to make the payments for product he actually sells and what if there is some kind of damage to the products. A consignment agreement is considered incomplete without these crucial details about what’s going to happen if something doesn’t go as planned. At the end, both parties will sign the agreement along with signature of witnesses if available.

Looking forward to share related and useful Documents, Templates and Samples for your day to day tasks.

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