Consignment Form Template for Philippines

The Consignment Form is a crucial document used in Philippine business transactions where one party wishes to sell goods through another party without transferring ownership until the final sale. This arrangement, governed by Philippine commercial law and the Civil Code, is particularly common in retail, art, and specialty goods sectors. The document provides a legal framework for consignment relationships, detailing inventory management, commission structures, reporting requirements, and risk allocation. A properly structured Consignment Form helps prevent disputes by clearly defining roles, responsibilities, and financial arrangements while ensuring compliance with local tax regulations and commercial practices. This document is essential for businesses looking to expand their distribution channels without significant capital investment in inventory.

1. Parties: Identifies the consignor and consignee with their complete legal names, addresses, and tax identification numbers

2. Background: Brief context explaining the purpose of the consignment arrangement and the parties' intent to enter into this agreement

3. Definitions: Defines key terms used throughout the agreement including 'Consigned Goods', 'Consignment Period', 'Commission Rate', etc.

4. Consignment Terms: Details the basic terms of the consignment arrangement, including duration and renewal provisions

5. Delivery and Acceptance: Specifies the process for delivery, inspection, and acceptance of consigned goods

6. Pricing and Commission: Sets out the pricing mechanism for the goods and the commission structure for the consignee

7. Payment Terms: Establishes payment procedures, timing, and method of payment between parties

8. Title and Risk: Clarifies that title remains with consignor until sale, and addresses risk allocation

9. Responsibilities of Consignee: Lists the consignee's obligations regarding storage, display, care, and sale of goods

10. Reporting Requirements: Specifies the frequency and content of sales reports and inventory statements

11. Termination: States grounds for termination and the process for ending the agreement

12. Governing Law: Specifies that Philippine law governs the agreement and outlines dispute resolution procedures