Document background
The Consignment Inventory Contract is essential for businesses operating under South African law where one party (consignor) places goods in the possession of another party (consignee) for sale while retaining ownership until the goods are sold. This arrangement is particularly valuable in industries with high-value inventory, seasonal products, or where suppliers wish to maintain closer market presence without requiring immediate payment from distributors or retailers. The document addresses critical aspects such as risk allocation, storage requirements, inventory management, payment terms, and compliance with South African commercial law, including VAT implications and consumer protection requirements. It's particularly relevant in the current business environment where efficient inventory management and flexible commercial arrangements are crucial for competitive advantage.
