Consignment Agreement for Austria

Consignment Agreement Template for Austria

A comprehensive legal agreement governed by Austrian law that establishes a consignment relationship between a consignor (owner of goods) and a consignee (seller/distributor). The agreement outlines the terms under which the consignee will store, display, and sell the consignor's goods while maintaining the consignor's ownership until sale. It covers crucial aspects such as commission structures, risk allocation, reporting requirements, and operational procedures, all in compliance with Austrian commercial and civil codes (UGB and ABGB). The document includes detailed provisions for inventory management, sales procedures, payment terms, and the return of unsold goods.

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What is a Consignment Agreement?

The Consignment Agreement is a crucial document used when a business owner (consignor) wants to sell their goods through another party (consignee) while retaining ownership until the final sale. Under Austrian law, this arrangement requires careful structuring to comply with both the Austrian Commercial Code (UGB) and Civil Code (ABGB). The agreement is particularly valuable in situations where manufacturers, wholesalers, or producers want to expand their distribution without selling directly to retailers, or where retailers want to minimize inventory risk. The document covers essential elements such as commission rates, payment terms, inventory management, risk allocation, and return procedures. This type of agreement is especially common in retail, luxury goods, and specialized equipment sectors where inventory management and product control are crucial considerations.

What sections should be included in a Consignment Agreement?

1. Parties: Identification of the consignor (owner of goods) and consignee (seller/distributor)

2. Background: Context of the agreement and brief description of the business relationship

3. Definitions: Key terms used throughout the agreement including 'Consigned Goods', 'Territory', 'Commission Rate', etc.

4. Appointment and Scope: Terms of appointment of consignee and scope of authority

5. Delivery and Storage of Goods: Terms for delivery, acceptance, and storage of consigned goods

6. Title and Risk: Confirmation that title remains with consignor until sale, risk allocation

7. Sales and Pricing: Terms regarding selling price, commission structure, and sales conditions

8. Payment Terms: Commission calculation, payment timing, and reporting requirements

9. Obligations of Consignee: Duties including storage, marketing, reporting, and customer service

10. Obligations of Consignor: Duties including product supply, support, and warranties

11. Term and Termination: Duration of agreement and termination provisions

12. Return of Unsold Goods: Process for returning unsold inventory

13. Governing Law and Jurisdiction: Specification of Austrian law and jurisdiction

14. General Provisions: Standard boilerplate clauses including notices, amendments, etc.

What sections are optional to include in a Consignment Agreement?

1. Insurance: Required when high-value goods are involved or specific insurance requirements exist

2. Intellectual Property: Needed when branded products or licensed goods are involved

3. Data Protection: Required when personal data processing is involved in the consignment relationship

4. Non-Competition: Optional restrictions on consignee's ability to sell competing products

5. Marketing and Promotion: Include when specific marketing requirements or restrictions apply

6. Quality Control: Necessary for products requiring specific storage conditions or handling

7. Minimum Performance Requirements: Include when setting specific sales targets or performance metrics

8. Territory Restrictions: Include when geographical limitations on sales are required

What schedules should be included in a Consignment Agreement?

1. Schedule 1 - Consigned Goods: Detailed list of products covered by the agreement

2. Schedule 2 - Commission Structure: Detailed breakdown of commission rates and calculation methods

3. Schedule 3 - Territory: Detailed description of geographical area covered

4. Schedule 4 - Reporting Requirements: Templates and specifications for required reports

5. Schedule 5 - Storage Requirements: Specific requirements for storage and handling of goods

6. Appendix A - Operating Procedures: Detailed procedures for day-to-day operations

7. Appendix B - Return Procedures: Specific procedures for returning unsold goods

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Austria

Publisher

Genie AI

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Retail

Manufacturing

Wholesale

Fashion and Apparel

Electronics

Luxury Goods

Art and Collectibles

Automotive Parts

Industrial Equipment

Consumer Goods

Agricultural Products

Relevant Teams

Legal

Sales

Operations

Supply Chain

Finance

Procurement

Compliance

Business Development

Distribution

Inventory Management

Relevant Roles

Commercial Director

Sales Manager

Legal Counsel

Business Development Manager

Operations Manager

Supply Chain Manager

Retail Operations Director

Procurement Manager

Contract Administrator

Finance Manager

Inventory Manager

Distribution Manager

Compliance Officer

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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