Consignment Agreement Template for Ireland

A Consignment Agreement is a commercial contract that allows you to place goods with a third party for sale while retaining ownership until the goods are actually sold. Under Irish law, this arrangement creates a unique relationship where the consignor (goods owner) maintains title while the consignee (seller) acts as an agent to market and sell the products on agreed terms.

When do you need this document?

You need a Consignment Agreement when entering arrangements where goods change possession but not ownership until sale. This is common in retail partnerships where suppliers want to expand market reach without losing inventory control, art galleries selling artwork on behalf of artists, luxury goods retailers managing high-value items, or manufacturers working with distributors who prefer not to purchase stock upfront. The agreement is also essential when establishing relationships with online marketplaces, pop-up retailers, or seasonal vendors who sell products on your behalf.

Key legal considerations

Your agreement must clearly define the relationship between parties to avoid confusion about agency versus sale arrangements. Critical clauses include commission structures and payment terms, specifying when and how the consignee receives compensation and when payment is due to you. Insurance and liability provisions are essential, determining who bears responsibility for damage, theft, or loss during the consignment period. You must establish clear reporting requirements, including sales records, inventory tracking, and accounting procedures. The agreement should address return policies for unsold goods, termination procedures, and any exclusive or non-exclusive selling rights granted to the consignee.

Legal requirements in Ireland

Under Irish law, consignment arrangements are governed by the Sale of Goods Act 1893 (as amended) and the Sale of Goods and Supply of Services Act 1980, which define the rights and obligations of parties in commercial transactions. If the arrangement creates an agency relationship, the Commercial Agents (Council Directive) Regulations 1994 may apply, providing additional protections for commercial agents. When consignment sales involve consumers, you must comply with the Consumer Protection Act 2007 to ensure consumer rights are protected. VAT obligations under the Value Added Tax Act 2010 require careful consideration, as the timing of VAT liability may depend on when goods are delivered versus when they are sold. The agreement must clearly specify which party is responsible for VAT registration, collection, and remittance to ensure compliance with Revenue requirements.