The Consignment Sales Agreement is a crucial document for businesses operating in New Zealand who wish to establish a commercial arrangement where goods are provided for sale without immediate transfer of ownership. This agreement is particularly valuable for suppliers looking to expand their market presence without establishing their own retail operations, and for retailers seeking to diversify their inventory without significant upfront investment. The document addresses key aspects such as commission structures, risk allocation, handling procedures, and reporting requirements, while ensuring compliance with New Zealand commercial law. It's essential for businesses dealing with specialized, high-value, or unique products where traditional wholesale arrangements may not be suitable. The agreement provides clarity on responsibilities, protects both parties' interests, and establishes clear procedures for financial settlements and inventory management.
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1. Parties: Identification of the consignor (goods owner) and consignee (seller)
2. Background: Context of the agreement and general business relationship between the parties
3. Definitions and Interpretation: Key terms used throughout the agreement and rules for interpretation
4. Appointment and Scope: Terms of the consignee's appointment and scope of authority to sell goods
5. Delivery and Storage of Goods: Process for delivery, acceptance, and storage of consignment goods
6. Title and Risk: Clarification that title remains with consignor until sale, and allocation of risk
7. Pricing and Commission: Pricing requirements, commission structure, and payment terms
8. Sales Process and Reporting: Requirements for sales procedures and regular reporting obligations
9. Payment Terms: Timeline and method for remitting sales proceeds and handling of commission
10. Obligations of Consignor: Consignor's responsibilities including product quality and documentation
11. Obligations of Consignee: Consignee's duties including care of goods and sales efforts
12. Term and Termination: Duration of agreement and circumstances for termination
13. Return of Unsold Goods: Process and conditions for returning unsold merchandise
14. Confidentiality: Protection of confidential information and trade secrets
15. General Provisions: Standard contractual terms including notices, amendments, and governing law
1. Insurance: Specific insurance requirements - include when high-value goods are involved
2. Intellectual Property: IP rights and usage - include when branded or creative goods are involved
3. Marketing and Display: Specific requirements for product marketing - include for retail consignment
4. Exclusivity: Exclusive selling rights - include when territory or product exclusivity is granted
5. Minimum Performance: Sales targets and consequences - include when performance metrics are crucial
6. International Shipping: International logistics terms - include for cross-border consignment
7. Data Protection: Data handling requirements - include when customer data is shared
8. Force Majeure: Provisions for unforeseen events - include for long-term or high-value agreements
1. Schedule 1 - Product List: Detailed list of consigned products with descriptions and SKUs
2. Schedule 2 - Commission Structure: Detailed breakdown of commission rates and any volume-based variations
3. Schedule 3 - Operating Procedures: Specific procedures for handling, storing, and selling goods
4. Schedule 4 - Reporting Templates: Standard forms for sales reports and inventory tracking
5. Schedule 5 - Service Level Requirements: Specific performance metrics and service standards
6. Appendix A - Storage Requirements: Specific requirements for storage and handling of goods
7. Appendix B - Insurance Requirements: Detailed insurance coverage requirements and minimum levels
Relevant legal definitions
Agreement
Applicable Laws
Business Day
Commission
Confidential Information
Consigned Goods
Consignment Period
Consignment Location
Consignor
Consignee
Delivery
Effective Date
Force Majeure Event
GST
Initial Term
Intellectual Property Rights
Inventory Report
Invoice
Loss
Minimum Price
Net Proceeds
Operating Procedures
Payment Period
Point of Sale
Product Schedule
Prohibited Acts
Purchase Price
Related Companies
Renewal Term
Representatives
Retail Price
Sales Period
Sales Report
Security Interest
Service Standards
Storage Requirements
Term
Territory
Third Party
Unsold Goods
Applicable Laws
Business Day
Commission
Confidential Information
Consigned Goods
Consignment Period
Consignment Location
Consignor
Consignee
Delivery
Effective Date
Force Majeure Event
GST
Initial Term
Intellectual Property Rights
Inventory Report
Invoice
Loss
Minimum Price
Net Proceeds
Operating Procedures
Payment Period
Point of Sale
Product Schedule
Prohibited Acts
Purchase Price
Related Companies
Renewal Term
Representatives
Retail Price
Sales Period
Sales Report
Security Interest
Service Standards
Storage Requirements
Term
Territory
Third Party
Unsold Goods
Clauses
Appointment
Authority
Title and Risk
Delivery
Storage
Commission
Payment
Sale Process
Pricing
Reporting
Inventory Management
Returns
Warranties
Representations
Insurance
Liability
Indemnification
Confidentiality
Intellectual Property
Data Protection
Record Keeping
Audit Rights
Performance Standards
Territory Rights
Marketing
Term
Termination
Force Majeure
Assignment
Subcontracting
Dispute Resolution
Governing Law
Notices
Amendment
Severability
Entire Agreement
Security Interest
Tax
Anti-Money Laundering
Compliance with Laws
Health and Safety
Authority
Title and Risk
Delivery
Storage
Commission
Payment
Sale Process
Pricing
Reporting
Inventory Management
Returns
Warranties
Representations
Insurance
Liability
Indemnification
Confidentiality
Intellectual Property
Data Protection
Record Keeping
Audit Rights
Performance Standards
Territory Rights
Marketing
Term
Termination
Force Majeure
Assignment
Subcontracting
Dispute Resolution
Governing Law
Notices
Amendment
Severability
Entire Agreement
Security Interest
Tax
Anti-Money Laundering
Compliance with Laws
Health and Safety
Relevant Industries
Retail
Art and Antiques
Fashion and Apparel
Electronics
Luxury Goods
Automotive Parts
Agricultural Products
Furniture and Home Decor
Sporting Goods
Books and Publications
Jewelry
Industrial Equipment
Handicrafts and Artisanal Products
Relevant Teams
Legal
Commercial Operations
Sales
Finance
Procurement
Supply Chain
Retail Operations
Risk Management
Contract Administration
Inventory Management
Merchandising
Business Development
Relevant Roles
Commercial Director
Retail Operations Manager
Business Development Manager
Sales Director
Supply Chain Manager
Inventory Manager
Legal Counsel
Contract Administrator
Finance Manager
Procurement Manager
Store Manager
Commercial Operations Manager
Risk Manager
Logistics Manager
Merchandising Manager
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