Vendor Consignment Agreement Template for New Zealand

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Key Requirements PROMPT example:

Vendor Consignment Agreement

"I need a Vendor Consignment Agreement for my artisanal jewelry business to place products with high-end retailers in Auckland, with specific provisions for commission structure and product handling requirements."

Document background
This Vendor Consignment Agreement template is designed for use in New Zealand business operations where a supplier wishes to place goods with a seller while retaining ownership until final sale. It's particularly useful in retail, wholesale, and specialty markets where consignment arrangements are common. The document comprehensively addresses key aspects required under New Zealand law, including clear title retention provisions, commission structures, risk allocation, and compliance with the Personal Property Securities Act 1999. The agreement is structured to protect both parties' interests while facilitating efficient consignment operations. It's especially relevant for businesses seeking to expand their distribution without significant upfront inventory investment by the seller, and includes provisions for reporting, stock management, and financial settlements that align with New Zealand commercial practices.
Suggested Sections

1. Parties: Identification of the Consignor (vendor) and Consignee with full legal names and details

2. Background: Context of the agreement, brief description of the business relationship and purpose

3. Definitions: Defined terms used throughout the agreement, including 'Consigned Goods', 'Commission', 'Territory', etc.

4. Appointment and Scope: Terms of appointment, exclusivity/non-exclusivity, territory coverage, and relationship nature

5. Ownership and Title: Clear statement that title remains with consignor until sale, consignee acts as bailee

6. Consignment Process: Procedures for delivery, acceptance, and handling of consigned goods

7. Storage and Handling: Requirements for storage, maintenance, and handling of consigned goods

8. Pricing and Commission: Commission structure, pricing guidelines, payment terms and processes

9. Sales and Reporting: Sales procedures, reporting requirements, frequency of reports

10. Risk and Insurance: Allocation of risk, insurance requirements, liability for loss or damage

11. Term and Termination: Duration of agreement, renewal terms, termination rights and processes

12. Return of Goods: Process for returning unsold goods, condition requirements, timing

13. Confidentiality: Protection of confidential information and trade secrets

14. General Provisions: Standard legal provisions including governing law, notices, assignment

Optional Sections

1. Marketing and Promotion: Requirements for marketing and promoting the consigned goods - include if consignee has marketing responsibilities

2. Minimum Performance Requirements: Sales targets or minimum performance standards - include if specific performance levels are required

3. Territory Exclusivity: Detailed terms of territorial rights - include if territory exclusivity is granted

4. Quality Control: Quality standards and inspection rights - include for sensitive or high-value goods

5. Intellectual Property: IP rights and usage terms - include if branded goods or IP rights are involved

6. Data Protection: Data handling and privacy requirements - include if personal data is processed

7. Non-Competition: Restrictions on competing activities - include if competitive restrictions are needed

Suggested Schedules

1. Schedule 1 - Consigned Goods: Detailed list and description of goods covered by the agreement

2. Schedule 2 - Commission Structure: Detailed commission rates, calculation methods, and examples

3. Schedule 3 - Territory Definition: Detailed description or map of the authorized territory

4. Schedule 4 - Operating Procedures: Detailed procedures for handling, storage, sales, and reporting

5. Schedule 5 - Service Level Requirements: Specific performance metrics and service standards

6. Appendix A - Reporting Templates: Standard forms for sales reports and inventory tracking

7. Appendix B - Return Procedures: Detailed procedures for returns and stock rotation

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

Retail

Wholesale

Fashion and Apparel

Art and Collectibles

Electronics

Furniture and Home Goods

Luxury Goods

Automotive Parts

Sporting Goods

Jewelry

Agricultural Products

Handicrafts

Books and Publications

Relevant Teams

Legal

Commercial Operations

Supply Chain

Finance

Sales

Procurement

Retail Operations

Inventory Management

Compliance

Business Development

Logistics

Relevant Roles

Commercial Director

Retail Operations Manager

Procurement Manager

Sales Director

Business Development Manager

Supply Chain Manager

Inventory Manager

Legal Counsel

Contracts Manager

Chief Financial Officer

Store Manager

Gallery Director

Wholesale Manager

Logistics Manager

Compliance Officer

Industries
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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