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Simple Consignment Agreement

Simple Consignment Agreement Template for United Arab Emirates

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Key Requirements PROMPT example:

Simple Consignment Agreement

"I need a Simple Consignment Agreement for my luxury watch business in Dubai, where I'll be placing high-end timepieces worth AED 2 million with a premium department store, with a 20% commission structure and monthly sales reporting requirements."

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Document background
The Simple Consignment Agreement is essential for businesses operating in the UAE market who wish to establish a consignment sales arrangement. This document is particularly useful when a supplier wants to place goods with a retailer or dealer while maintaining ownership until final sale. The agreement, governed by UAE law, includes crucial provisions for handling, storing, and selling consigned goods, commission structures, and payment terms. It ensures compliance with UAE Federal Laws, including the Civil Code (Federal Law No. 5 of 1985) and Commercial Code (Federal Law No. 18 of 1993), while providing flexibility for various commercial arrangements. The document is commonly used in retail, wholesale, and distribution sectors, offering protection for both consignor and consignee interests.
Suggested Sections

1. Parties: Identification of the Consignor and Consignee with full legal names and addresses

2. Background: Brief context of the arrangement and purpose of the agreement

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

4. Appointment and Scope: Terms of appointment of the consignee and scope of consignment arrangement

5. Delivery and Receipt of Goods: Process and requirements for delivery and acceptance of consigned goods

6. Title and Risk: Clarification that title remains with consignor while goods are in consignee's possession

7. Pricing and Commission: Agreed pricing structure for goods and commission rates for the consignee

8. Payment Terms: Terms for payment collection and remittance to the consignor

9. Reporting and Accounting: Requirements for sales reporting and accounting of consigned goods

10. Storage and Maintenance: Requirements for storage, handling, and maintenance of consigned goods

11. Term and Termination: Duration of agreement and conditions for termination

12. General Provisions: Standard legal provisions including governing law, notices, and dispute resolution

Optional Sections

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

2. Marketing and Display: Include when specific requirements exist for product display and marketing

3. Exclusivity: When exclusive rights are granted for specific territories or products

4. Returns and Unsold Goods: Include when specific procedures for handling returns and unsold goods are needed

5. Quality Control: When specific quality standards or inspection rights need to be maintained

6. Intellectual Property: Include when use of trademarks or other IP rights needs to be addressed

7. Confidentiality: When specific confidentiality obligations need to be detailed

8. Force Majeure: When specific force majeure provisions are required beyond standard provisions

Suggested Schedules

1. Schedule 1 - Consigned Goods: Detailed list of products including specifications and quantities

2. Schedule 2 - Pricing Structure: Detailed pricing information and commission calculations

3. Schedule 3 - Operating Procedures: Detailed procedures for handling, storage, and sales of goods

4. Schedule 4 - Reporting Templates: Standard forms for sales reporting and inventory tracking

5. Schedule 5 - Territory Definition: Detailed description of authorized sales territory if applicable

6. Appendix A - Storage Requirements: Specific requirements for storage conditions and handling

7. Appendix B - Quality Standards: Detailed quality standards and inspection procedures if applicable

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

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant Industries

Retail

Wholesale Trade

Manufacturing

Fashion and Luxury Goods

Electronics

Automotive

Consumer Goods

Art and Antiques

Jewelry

Furniture and Home Goods

Industrial Equipment

Agricultural Products

Relevant Teams

Legal

Sales

Operations

Supply Chain

Finance

Procurement

Compliance

Commercial

Retail Operations

Inventory Management

Relevant Roles

Commercial Director

Sales Manager

Operations Manager

Supply Chain Manager

Legal Counsel

Business Development Manager

Retail Manager

Procurement Manager

Finance Manager

Inventory Manager

Compliance Officer

Contract Administrator

Industries
UAE Federal Law No. 5 of 1985 (Civil Code): Governs general contract principles, obligations between parties, and legal remedies in civil transactions
UAE Federal Law No. 18 of 1993 (Commercial Code): Regulates commercial transactions and business relationships between merchants, including consignment arrangements
UAE Federal Law No. 18 of 1981 (Commercial Agency Law): Regulates commercial agency relationships and protection of agents in the UAE
UAE Federal Law No. 24 of 2006 (Consumer Protection Law): Ensures protection of consumer rights and regulates trading practices, relevant when consigned goods are for consumer sale
UAE Federal Law No. 19 of 2016 (Anti-Commercial Fraud Law): Protects against commercial fraud and ensures authenticity of goods in commercial transactions
UAE Federal Law No. 8 of 2015 (Dubai Customs Law): Regulates customs procedures and requirements for goods entering or leaving the UAE, relevant for international consignment arrangements
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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