Online Consignment Agreement Template for Philippines

The Online Consignment Agreement serves as a crucial legal framework for businesses engaging in consignment sales through digital platforms in the Philippines. This document is essential when product owners wish to sell their goods through online marketplaces without transferring ownership until final sale, while complying with Philippine e-commerce laws and regulations. The agreement covers vital aspects such as commission structures, payment terms, platform obligations, data protection requirements (under the Data Privacy Act of 2012), and operational procedures for online sales. It's particularly relevant in the growing Philippine e-commerce sector, where traditional consignment models are being adapted to digital platforms. The agreement ensures compliance with the Electronic Commerce Act of 2000 and other relevant Philippine legislation while protecting both consignor and consignee interests in the digital marketplace.

1. Parties: Identification of the Consignor (owner of goods) and Consignee (online platform/seller), including complete business details and registration information

2. Background: Context of the agreement, including the nature of the online platform and the general purpose of the consignment arrangement

3. Definitions: Key terms used throughout the agreement, including technical terms related to the online platform and consignment operations

4. Appointment and Scope: Terms of the Consignee's appointment and the scope of authority to sell goods online

5. Consignment Process: Procedures for submitting, accepting, and listing products on the online platform

6. Platform Operations: Rules and procedures for operating on the online platform, including product listings, pricing, and inventory management

7. Commission Structure: Details of commission rates, calculation methods, and payment terms

8. Payment Processing: Procedures for handling online payments, settlement cycles, and fund transfers

9. Responsibilities of Consignor: Obligations regarding product quality, authenticity, pricing guidelines, and inventory maintenance

10. Responsibilities of Consignee: Obligations regarding platform maintenance, customer service, and sales reporting

11. Product Returns and Refunds: Procedures for handling customer returns and refund processes

12. Data Protection and Privacy: Compliance with data protection laws and handling of customer information

13. Term and Termination: Duration of the agreement and conditions for termination

14. Representations and Warranties: Legal assurances from both parties regarding authority, product authenticity, and service quality

15. Liability and Indemnification: Allocation of risks and responsibilities between parties

16. General Provisions: Standard legal clauses including notices, amendments, governing law, and dispute resolution