Standard Consignment Agreement Template for Nigeria

The Standard Consignment Agreement is a crucial commercial document used in Nigerian business operations where a supplier (consignor) wants to place goods with a retailer or dealer (consignee) for sale without transferring ownership until the actual sale occurs. This arrangement is particularly common in retail, wholesale, and distribution sectors across Nigeria. The agreement covers essential aspects such as delivery terms, pricing structures, commission rates, reporting requirements, risk allocation, and payment procedures, all while ensuring compliance with Nigerian commercial law, including the Contract Act of 1990 and the Sale of Goods Act. The document provides a comprehensive framework for managing consignment relationships, protecting both parties' interests, and establishing clear operational guidelines.

1. Parties: Identifies and provides full details of the consignor and consignee

2. Background: Explains the context and purpose of the consignment arrangement

3. Definitions: Defines key terms used throughout the agreement

4. Appointment and Scope: Establishes the consignment relationship and its scope

5. Delivery and Acceptance: Details the process for delivery and acceptance of consigned goods

6. Title and Risk: Clarifies ownership of goods and risk allocation

7. Pricing and Commission: Establishes pricing mechanisms and commission structure

8. Payment Terms: Details payment procedures, timing, and methods

9. Responsibilities of Consignor: Lists obligations and duties of the consignor

10. Responsibilities of Consignee: Lists obligations and duties of the consignee

11. Reporting and Accounting: Specifies reporting requirements and accounting procedures

12. Term and Termination: Defines agreement duration and termination provisions

13. Warranties and Representations: States warranties given by both parties

14. Confidentiality: Protects confidential information of both parties

15. Governing Law: Specifies Nigerian law as governing law

16. Dispute Resolution: Details process for resolving disputes

17. General Provisions: Includes standard boilerplate clauses