📝 Contract Template

Consignment Agreement Template

Retail consignment terms with pricing, duration, insurance. Example: 60/40 split, 90-day consignment period.

What a consignment agreement needs to make clear

• That title stays with the consignor until sale, and that the retailer holds goods as bailee
• The commission split, and whether it is calculated on the gross or net of card fees
• The consignment period, and what happens to unsold stock at the end of it
• Who sets the retail price, and whether markdowns need consent
• Which party insures the stock while it is on the retailer’s premises
• The settlement cycle — when the consignor is paid, and against what statement
• Responsibility for theft, damage and shrinkage
• How either party may terminate, and how stock is returned

The clause that matters most is the one about insolvency

Consignment exists to keep goods off the retailer’s balance sheet, but that protection is only as good as the paperwork. If the retailer fails, a consignor who cannot demonstrate retained title may find their stock treated as part of the pool. Registering a security interest on the PPSR is the usual way to protect that position, and it has to be done properly and in time. This is worth advice rather than a template.

• Consider registering on the PPSR — unregistered retained title has failed consignors before
• Keep an identifiable stock list per consignment, with codes, not a running total
• Agree in writing who wears loss on damaged or stolen stock before it happens

Running it day to day

• Reconcile physically each quarter, not only from the sales report
• Agree a markdown authority level so the retailer can clear slow stock without a phone call each time
• Put an end date on every consignment; open-ended arrangements become disputes

Related templates

General information only — not legal, tax or financial advice. For contracts and tax documents, confirm your obligations with a qualified professional or the relevant authority.