The Simple Consignment Agreement is designed for use in New Zealand business contexts where parties wish to establish a commercial relationship for the sale of goods on consignment. This arrangement allows suppliers (consignors) to place their products with retailers or sellers (consignees) without requiring an upfront purchase, making it an attractive option for both established businesses and new market entrants. The agreement covers essential aspects such as delivery terms, pricing structures, commission rates, inventory management, and payment procedures, while ensuring compliance with New Zealand's commercial legislation, including the Contract and Commercial Law Act 2017 and the Personal Property Securities Act 1999. This document type is particularly valuable in situations where suppliers want to maintain ownership of goods until sold, while allowing retailers to minimize inventory risk.
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1. Parties: Identifies and provides full legal details of the consignor and consignee
2. Background: Explains the context of the agreement and the parties' intentions to enter into a consignment arrangement
3. Definitions: Defines key terms used throughout the agreement
4. Appointment and Scope: Establishes the consignment relationship and defines its scope
5. Delivery and Storage of Goods: Details the process for delivery of goods to the consignee and storage requirements
6. Title and Risk: Clarifies that title remains with consignor while establishing risk responsibilities
7. Pricing and Commission: Sets out the pricing mechanism for goods and consignee's commission structure
8. Payment Terms: Specifies payment procedures, timing, and reporting requirements
9. Obligations of Consignor: Lists the consignor's responsibilities including product provision and support
10. Obligations of Consignee: Details the consignee's duties in storing, displaying, and selling the goods
11. Term and Termination: Specifies the duration of the agreement and termination provisions
12. General Provisions: Standard contractual provisions including governing law, notices, and amendment procedures
1. Insurance: Details insurance requirements - include when goods are of high value or special insurance needs exist
2. Marketing and Promotion: Specifies marketing responsibilities and cost allocation - include when marketing is a significant aspect of the arrangement
3. Minimum Performance Requirements: Sets sales targets or minimum performance standards - include when specific performance levels are crucial
4. Exclusivity: Defines any exclusive rights or territories - include when territorial or product exclusivity is granted
5. Returns and Unsold Goods: Procedures for handling returns and unsold inventory - include when dealing with seasonal or perishable goods
6. Intellectual Property: Protects trademarks and other IP - include when branded goods are involved
7. Data Protection: Covers handling of customer data - include when personal data collection is involved
1. Schedule 1 - Product List: Detailed list of consigned products including descriptions and pricing
2. Schedule 2 - Commission Structure: Detailed breakdown of commission rates and any volume-based incentives
3. Schedule 3 - Operating Procedures: Specific procedures for handling, storing, and selling the consigned goods
4. Schedule 4 - Reporting Template: Format for regular sales and inventory reports
5. Appendix A - Storage Requirements: Specific requirements for storage and handling of the goods
6. Appendix B - Quality Standards: Quality control standards and inspection procedures
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