Consignment Agreement for Malta

Consignment Agreement Template for Malta

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Consignment Agreement

"I need a Consignment Agreement for my luxury watch business where I'll be placing watches worth €500,000 with a retailer in Malta, with a 25% commission structure and specific storage security requirements to be in place by March 2025."

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What is a Consignment Agreement?

This Consignment Agreement template is designed for use under Maltese law when establishing a commercial relationship where goods are provided for sale without immediate transfer of ownership. The document is particularly relevant for businesses looking to expand their distribution channels without traditional wholesale arrangements, or for retailers seeking to minimize inventory risk. The agreement comprehensively addresses key aspects required under Maltese law, including clear title retention provisions, VAT compliance, and commercial code requirements. It includes essential provisions for consignment relationships such as delivery terms, storage obligations, commission structures, reporting requirements, and return procedures. This template aligns with Malta's Civil Code (Chapter 16) and Commercial Code (Chapter 13) requirements while providing flexibility to accommodate various business models and industry-specific needs.

What sections should be included in a Consignment Agreement?

1. Parties: Identifies and provides full details of the consignor and consignee

2. Background: Explains the context of the agreement and the parties' intentions

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: Details the arrangements for delivery of goods and storage requirements

6. Title and Risk: Clarifies that title remains with consignor and allocates risk responsibilities

7. Pricing and Commission: Sets out the pricing mechanism and commission structure

8. Payment Terms: Specifies payment arrangements and timing

9. Obligations of Consignor: Lists the consignor's duties and responsibilities

10. Obligations of Consignee: Lists the consignee's duties and responsibilities

11. Reporting and Records: Specifies reporting requirements and record-keeping obligations

12. Term and Termination: Defines the duration and termination provisions

13. Return of Unsold Goods: Procedures for returning unsold merchandise

14. Confidentiality: Protects confidential information of both parties

15. Governing Law and Jurisdiction: Specifies Maltese law as governing law and jurisdiction

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

What sections are optional to include in a Consignment Agreement?

1. Insurance: Required when specific insurance arrangements need to be documented

2. Quality Control: Include when dealing with sensitive or regulated products

3. Marketing and Display: Include when specific marketing or display requirements exist

4. Intellectual Property: Required when IP rights need protection, especially for branded goods

5. Data Protection: Include when personal data processing is involved

6. Non-Competition: Include when restricting consignee from selling competing products

7. Force Majeure: Include when specific force majeure provisions are needed beyond standard ones

8. Bank Guarantee: Include when additional financial security is required

What schedules should be included in a Consignment Agreement?

1. Schedule 1 - Products: Detailed list of consigned products with specifications

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

3. Schedule 3 - Storage Requirements: Specific storage and handling requirements for the goods

4. Schedule 4 - Reporting Template: Standard format for regular sales and inventory reports

5. Schedule 5 - Service Levels: Detailed service level requirements and KPIs

6. Appendix A - Return Procedures: Detailed procedures for returning unsold goods

7. Appendix B - Insurance Requirements: Specific insurance requirements and coverage details

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

Relevant legal definitions
Clauses
Relevant Industries

Retail

Wholesale

Fashion and Apparel

Art and Antiques

Electronics

Automotive Parts

Luxury Goods

Books and Publishing

Furniture

Agricultural Products

Industrial Equipment

Jewelry and Watches

Relevant Teams

Legal

Commercial

Sales

Finance

Operations

Supply Chain

Procurement

Retail Operations

Distribution

Risk Management

Compliance

Business Development

Relevant Roles

Commercial Director

Sales Manager

Retail Operations Manager

Legal Counsel

Contract Manager

Business Development Manager

Supply Chain Manager

Finance Director

Commercial Operations Manager

Procurement Manager

Inventory Manager

Logistics Manager

Retail Store Manager

Distribution Center Manager

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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