Document background
The Vendor Consignment Agreement is essential for businesses operating in India that wish to establish a consignment sales arrangement. This document is particularly relevant when a vendor wants to maintain ownership of goods while placing them in the possession of another party for sale. The agreement becomes necessary when businesses seek to expand their distribution network without transferring ownership of goods, manage inventory risk, or test new markets. It comprehensively addresses operational procedures, financial arrangements, and legal compliance requirements under Indian law, including GST implications. The document is structured to comply with Indian commercial legislation while protecting both parties' interests in the consignment relationship. This type of agreement is commonly used in retail, manufacturing, and distribution sectors, particularly when dealing with high-value goods or when vendors want to maintain control over pricing and inventory.
