Consignment Sales Agreement Template for England and Wales

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Key Requirements PROMPT example:

Consignment Sales Agreement

"I need a Consignment Sales Agreement for my art gallery to accept paintings from international artists, with specific terms about insurance requirements and commission rates varying by price point, starting from March 2025."

Document background
The Consignment Sales Agreement is essential for businesses operating on a consignment model in England and Wales. It's particularly useful when manufacturers, wholesalers, or artists want to place their goods with retailers or dealers without transferring ownership. The agreement covers crucial aspects such as commission structures, risk allocation, reporting requirements, and payment terms. It provides legal protection for both parties while ensuring compliance with relevant legislation including the Sale of Goods Act 1979 and Commercial Agents Regulations 1993.
Suggested Sections

1. Parties: Identification of consignor and consignee

2. Background: Context of the agreement and business relationship

3. Definitions: Key terms used throughout the agreement

4. Consignment Terms: Core terms of the consignment arrangement

5. Pricing and Commission: Payment terms, commission rates, and calculation methods

6. Title and Risk: Ownership provisions and risk allocation

7. Obligations of Parties: Duties of consignor and consignee

8. Term and Termination: Duration and termination provisions

Optional Sections

1. Insurance: Insurance requirements for consigned goods - include when high-value goods are involved

2. Marketing and Promotion: Terms for promoting consigned goods - include when consignee has marketing responsibilities

3. Exclusivity: Exclusive rights provisions - include when territory or product exclusivity is granted

4. Data Protection: GDPR compliance provisions - include when personal data is processed

Suggested Schedules

1. Schedule 1: Products: List of consigned products and specifications

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

3. Schedule 3: Territory: Defined geographical area for sales

4. Schedule 4: Reporting Requirements: Templates and timing for sales reports

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
Relevant Teams
Relevant Roles
Industries

Sale of Goods Act 1979: Primary legislation defining rights and obligations in goods sales, covering title, quality, fitness for purpose, and transfer of property

Supply of Goods and Services Act 1982: Legislation relevant for any services component of the agreement, implying terms about quality of service

Commercial Agents Regulations 1993: Regulations governing rights and duties of commercial agents if the arrangement involves agency relationships

Consumer Rights Act 2015: Legislation providing mandatory consumer protection provisions when end customers are consumers

Contracts (Rights of Third Parties) Act 1999: Legislation governing the rights of third parties to enforce contractual terms

Unfair Contract Terms Act 1977: Legislation setting limitations on exclusion clauses and establishing reasonableness requirements

Competition Act 1998: Legislation regulating anti-competitive practices and vertical agreements

Data Protection Act 2018 and UK GDPR: Legislation establishing data protection obligations when personal data is processed

Agency Law: Common law principles governing relationships between principals and agents

Contract Formation Principles: Common law principles governing the formation and enforcement of contracts

Bailment Principles: Common law principles governing the temporary transfer of possession of goods

Fiduciary Duties: Common law principles establishing obligations of trust and loyalty in certain business relationships

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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