A Consignor Agreement is essential when establishing a commercial relationship where goods are placed with a third party for sale while maintaining original ownership. This document is particularly relevant in England and Wales, where it must comply with specific legislative requirements including the Sale of Goods Act 1979 and commercial law principles. The agreement typically covers crucial aspects such as commission rates, risk allocation, insurance requirements, and operational procedures. It's commonly used in retail, art sales, and industrial sectors where inventory management and sales through third parties are prevalent.

1. Parties: Identification and details of the consignor and consignee

2. Background: Context of the agreement and relationship between parties

3. Definitions: Key terms used throughout the agreement including those from relevant legislation (Sale of Goods Act 1979, Supply of Goods and Services Act 1982)

4. Consignment Terms: Core terms of the consignment arrangement including delivery, storage, and handling requirements

5. Payment Terms: Financial arrangements, commission structure, and payment mechanics

6. Title and Risk: Ownership retention, risk allocation, and insurance requirements

7. Duration and Termination: Term of agreement, renewal provisions, and termination rights

8. Representations and Warranties: Standard warranties regarding authority, capacity, and quality of goods

9. Liability and Indemnification: Limitation of liability and indemnification provisions

10. General Provisions: Standard boilerplate clauses including governing law, notices, and entire agreement