Consignment Contract

Consignment Contract

The form creates the contract you need if you sell goods through consignment. This contract details the specifics: the goods consigned, percentage of the purchase price the owner will receive, termination of consignment -- and more.

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See below the form for a full product description.


 ("Consignor") is the owner of the goods and accompanying rights in the following (the "Goods"):  .

Consignor desires to have  ("Consignee"), located at , represent Consignor with regard to the display and sale of the Goods. From time to time, the parties may revise the list of Goods specified and such revisions, if executed by both parties, shall be incorporated in this agreement.

Appointment of Consignee

Alternate Selection
Label Contract Text
exclusive Consignor appoints Consignee as its exclusive agent for the sale and exhibition of the Goods in .
nonexclusive Consignor appoints Consignee as its nonexclusive agent.

Consignee shall use its best efforts to promote and sell the Goods and to provide attribution of the Goods to Consignor.

Fees and Payments

Consignee shall sell the Goods at the retail prices established by Consignor in this agreement. All income paid as a result of the sale of any Goods by the Consignee shall be paid directly to Consignee, and Consignee shall issue payment to Consignor within  days of Consignee's receipt of such income along with any accountings, including identifying inventory numbers. For sales of Goods, Consignee shall receive a commission of % of any sales income.

Multiple Selection
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audit rights

Consignee shall keep accurate books covering all transactions relating to the Goods, and Consignor or Consignor's authorized representatives shall have the right, upon five days' prior written notice and during normal business hours, to inspect and audit Consignee's records relating to the Goods. No payments may be made on credit or approval without the permission of Consignor.

purchaser info

Consignee shall provide Consignor with the name and contact information for purchasers of the Goods.


Alternate Selection
Label Contract Text
approval for discount Consignee will obtain Consignor's approval before changing retail prices or offering the Goods at discount. 
fixed discount

Consignee may offer discounts to selected customers up to %.

Multiple Selection

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custom order commissions

Custom Order Commissions

Alternate Selection
Label Contract Text
custom order % In the event of custom orders resulting from exhibition at Consignee, Consignee shall receive a commission of % of any sales income.
custom order no payment Consignee shall not be entitled to any commission on custom orders resulting from exhibition.


Multiple Selection
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costs paid per party shipping

Costs for shipping: (a) from Consignor to Consignee shall be paid by Consignor; (b) from Consignee to Consignor shall be paid by Consignee; and (c) from Consignee to anywhere other than Consignor (for example, to customers) shall be paid by Consignee.

costs paid as set forth

Costs for shipping shall be as follows:


Consignee shall maintain adequate insurance for the wholesale value of the Goods (the retail price minus potential commission), and shall pay all deductibles.


This Agreement may be terminated at any time on or after  at the discretion of either Consignor or Consignee. This Agreement shall automatically terminate if Consignor dies or if Consignee becomes insolvent, declares bankruptcy, or moves from the Territory. In the event of termination, all Goods in Consignee's possession shall be promptly returned to Consignor at Consignee's expense.

Ownership, Loss or Damage, Security Interest

Consignee agrees and acknowledges that the delivery of the Goods to Consignee is a consignment and not a sale of the Goods to Consignee. As Consignor's agent, Consignee shall have a duty to protect the Goods and shall be strictly liable for any damage to the Goods once in Consignee's possession and until returned to Consignor. If Goods are destroyed while within Consignee's possession, Consignee shall pay Consignor the full value as established by the retail price. Consignor shall retain full title to all Goods consigned to Consignee and shall in no event be subject to claims by creditors of Consignee. Title of the Goods shall pass directly from Consignor to purchaser, and, in the event of default or breach by Consignee, Consignor shall have all rights of a secured party under the Uniform Commercial Code and Consignee agrees to execute all forms necessary to perfect such interest.

Multiple Selection
Label Contract Text
consignment notice

Posting Consignment Notice

Consignee agrees to prominently post the following notice in its gallery: "Goods at this gallery are sold under the terms of a consignment agreement."

Multiple Selection
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additional expenses


Consignee shall pay expenses as listed below. In the event that an expense shall be shared between Consignor and Consignee, the relative percentage of Consignee's payment shall be set forth below, and Consignor shall be responsible for the remainder. For any shared expenses, Consignee shall provide an estimate of the expense and, in the event the actual amount of the expense exceeds the estimate, Consignee shall pay the difference.

Entire Agreement

This is the entire agreement between the parties. It replaces and supersedes any and all oral agreements between the parties, as well as any prior writings. This Agreement may not be amended except in a writing as provided for in this Agreement.


This Agreement binds and benefits the respective successors, inheritors, assigns, and personal representatives of the parties, except to the extent of any contrary provision in the Agreement.


The failure to exercise any right provided in this Agreement shall not be a waiver of prior or subsequent rights.

Governing Law

This Agreement will be governed by and construed in accordance with the laws of the state of 


If any court determines that any provision of this Agreement is invalid or unenforceable, any invalidity or unenforceability will affect only that provision and will not make any other provision of this Agreement invalid or unenforceable and shall be modified, amended, or limited only to the extent necessary to render it valid and enforceable.

Attached Papers

Any attached sheet or document shall be regarded as fully contained in this Agreement.


All notices must be in writing. A notice may be delivered to a party at the address that follows a party's signature or to a new address that a party designates in writing. A notice may be delivered in person, by certified mail, or by overnight courier.

No Partnership

This Agreement does not create a partnership relationship. 

Keep Together


This Agreement may be signed by the parties in different counterparts and the signature pages combined will create a document binding on all parties.


Signature: ____________________________________________
Title: _____________________________________
Date: _______________


Signature: ____________________________________________
Title: _____________________________________
Date: _______________


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A consignment contract lets owners of goods hand them over to another person, who will then attempt to sell the goods. If the goods are sold, the seller will receive a fee (usually a percentage of the purchase price) and the original owner will receive the rest of the money.

For example, a sculptor may use a gallery to sell his work -- with the understanding that, if it sells, the gallery receives 50 percent of the proceeds. Or a homeowner may leave used furniture with a resale shop, which might keep one-third of the sale price.

This contract details the specifics: the goods consigned, percentage of the purchase price the owner will receive, termination of consignment -- and more.

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