Download free, fully‑editable Consignment Agreement templates in Microsoft Word. Includes retail, art, inventory, online‑store, franchise and more—plus a step‑by‑step guide. You can explore all of our Agreement Templates to find one suitable for your requirements.
Whenever a supplier gives goods to a retailer, an artist shows his work in a gallery, or a manufacturer sends stock to a distributor for sale on a commission basis, the deal is referred to as a consignment. In contrast to a direct sale, the seller still has the right of ownership over the products until they are sold, and the consignee is entitled to a commission only for the items sold. In cases where ownership, payment timing, risk of loss, and responsibility for unsold stock could cause confusion, it becomes necessary to have a written Consignment Agreement. It clearly describes the ownership rights of each party, the maximum period the goods can stay at the consignee’s location, the commission percentage, the schedule for reporting and making payments, how to deal with returns or damaged goods, and the process for dissolving the partnership.
What Is a Consignment Agreement?
A Consignment Agreement is a contract which is legally binding between the seller (the owner of the goods) and the buyer (the party who puts the goods on display, stores or sells them for the consignor). The most important aspect is that ownership of the goods remains with the seller until the buyer actually sells a piece of merchandise. At the time of sale, the buyer pays the seller the agreed-upon share of the proceeds, usually after subtracting a commission, handling fees, or previously agreed expenses. The agreement determines the duration of the consignment, the stocktaking and reporting obligations, the commission structure, the responsibility for loss, theft, or damage, the process for the return or disposal of unsold items, and the termination procedure. By specifying these issues, the contract offers certainty to both parties, clarifies tax and accounting treatment, and sets up an enforceable framework if a dispute arises over unpaid commissions, damaged inventory, or premature termination.
How to Use a Consignment Agreement Sample in Word?
First, open the downloaded Word file and then proceed to read through each clause thoroughly so that you are able to identify the control of each. Replace all the place holders—usually, they are the specific texts within brackets like “[Consignor Name]”, “[Consignee Name]”, “[Effective Date]”, “[Description of Goods]”, or “[Commission Rate]”—with the precise details of your deal. Among those areas mentioned in the sections that deal with the stock list (maybe you will need to add a separate schedule that includes numbering of each SKU, artwork title or product description), the commission‑calculation formula (percentage of gross sales, net after returns, or a tiered structure), and reporting frequency (weekly, monthly, or per‑sale), give special attention to them. In case the consignment includes interstate trade, then mark the appropriate incoterm (FOB, CIF, DDP) along with any export‑control or customs‑clearance obligations.
Once the document shows the agreed terms, it is highly recommended that every party gets their own legal advice. An attorney can verify that the ownership-retention provision fulfills local commercial-code requirements, that the commission structure is not in contradiction with any resale-price-maintenance or antitrust regulations, and that the tax treatment of the consignment income is fair for both sides. When the inspection is done, make two copies, have the consignor and the consignee sign them in front of the necessary witnesses or a notary public (if your area requires notarization for contracts that involve title-retention of goods), and keep the original in a locked file while also saving a searchable PDF version for easy access.
Download these Free Consignment Agreement Templates
The purpose of a consignment agreement is to spell out the terms and expectations of both parties, ensuring mutual understanding and reducing conflicts. Plugin: insert the code into CMS and it will be ready for use.
I have prepared these free templates using MS Word. Below are the previews and download links.
Popular Types of Consignment Agreements
Choosing the right consignment‑agreement template depends on the nature of the goods, the sales channel, and any special compliance or branding requirements. Below is a narrative overview of the most common consignment‑agreement structures, allowing you to decide which version—or which combination of clauses—best matches your business model.
Retail Consignment Agreement
The supplier who provides the products to a physical store but does not sell them immediately designed this template. The store’s rights regarding the products, the percentage of the commission (usually 20-30% of the retail price), the schedule for inventory checks (monthly physical counts), and the procedure for returning the unsold stock after the consignment period are all stated in the template. Moreover, it covers a clause for “loss-or-damage” that requires the retailer to provide insurance for the goods while they are on the premises and an additional clause for “price maintenance” that makes it illegal for the retailer to sell the items below a certain price without the consignor’s written approval.
Art‑Gallery Consignment Agreement
Specifically created for the artists who display paintings, sculptures, and photography in a gallery. The agreement contains the mentioning of the exhibition period, the price that is agreed upon (or a price range authorized by the artist), the gallery’s commission (usually between 40 and 50 percent of the sale price), and the treatment of framing, insurance and shipping costs. The template is equipped with a comprehensive insurance provision due to the fact that art is a valuable asset, which requires the gallery to have coverage equal to the appraised value of each piece and a provenance-representation clause where the artist warrants clear title and originality.
Online‑Store Consignment Agreement
This is what the traditional retail arrangement where the retailer pays for the goods only after they are sold and shipped from the brand’s location to the e-commerce marketplace, drop-shipping platform, or affiliate seller who lists them for sale online. The contract specifies who will list the items digitally, what the commission will be (usually a certain percentage of the net sale after deducting buyer fees), how to keep track of the stock levels (API access or scheduled CSV uploads), and how to manage returns (the vendor returns the goods to the dealer and either gives them the money back or charges a restocking fee). Since the transaction takes place through a third-party platform, the contract also contains an “obey the platform’s policies” clause wherein the dealer must follow the rules about item descriptions, prices, and restrictions set by the marketplace.
Franchise‑Style Consignment Agreement
Sometimes, a franchisor provides a franchisee with branded products to sell them on a commission basis, not through the outright purchase of the inventory. This template combines franchise-law provisions (trademarks’ use, brand-guidelines enforcement) with consignment mechanics (the title is still with the franchisor until sale, royalty or marketing-fee calculations). Besides, there is a “quality-control” clause in it which gives the franchisor the right to inspect the premises and inventory of the franchisee in order to check that the brand standards are being followed.
Wholesale‑to‑Distributor Consignment Agreement
Whenever a producer sends bulk stock to a local distributor, the latter keeping the merchandise in a warehouse and selling it to shops for a commission, the contract has to deal with storage costs, ownership of inventory proof (warehouse receipts), and a “first right of refill” clause that forces the distributor to buy again from the maker when the inventory gets lower than a set limit. Besides, the template has a “charge-back” clause for the damaged or outdated stock that the producer may take back.
Seasonal‑Goods Consignment Agreement
The perfect choice for holiday decorations, designer accessories, or fruits and vegetables with a short selling period. The contract sets a specific consignment period (for instance, October 1 to December 31), a “sell-through” goal (the lowest percentage of products that have to be sold), and rapid return of unsold items after the end of the season. It might also contain a “price-adjustment” clause that permits the consignor to modify the retail price throughout the season in case of any changes in market conditions.
Technology‑Device Consignment Agreement
Electronics manufacturers use this method by placing their devices (smartphones, tablets, wearables) in the showrooms of retailers for the demonstration and sale. The devices may need firmware updates or warranty service, and so the template adds a “technical-support” section that requires the retailer to offer first-line support and redirect warranty claims to the manufacturer. Along with that, there is a “return-for-repair” procedure as well as a “risk-of-loss” allocation that generally puts the responsibility on the retailer while the products are in their location.
Book‑Publishing Consignment Agreement
Independent bookstores often receive printed books from authors or small presses on a consignment basis. The contract specifies the retail price, the store’s commission (usually 30-40% of the cover price), the inventory-turnover reporting (weekly sales sheet), and the “unsold-after-90-days” clause necessitating the store to either return or allow the publisher to take the unsold copies at a discount. A “markdown-approval” provision is also included requiring the retailer to obtain the publisher’s consent before discounting the books beyond the agreed-to percentage, thereby protecting the publisher’s interest.
Food‑and‑Beverage Consignment Agreement
Artisan products may find their place in stores, specialty grocery shops, or even farmer’s markets as a consignment sale. The agreement includes handling of the perishable goods, an inventory rotation requirement that is in line with the “first-in-first-out” concept, a temperature control clause that is easy to understand, and a process for food safety issues that is short notice recall. Additionally, it talks about a commission that is computed on net sales after the deduction of any spoilage.
Vehicle‑Lot Consignment Agreement
Sometimes, car dealerships take used cars on consignment, selling them for the owner. The agreement specifies the dealer’s right to showcase the car, the commission (often either a flat fee or a percentage of the selling price), the dealer’s duty to do registration, insurance, and necessary repairs, and the owner’s duty to give a title that is clear and free of liens. A “buy-back” clause is also part of it that lets the dealer acquire the vehicle at a predetermined price if it fails to sell in the prescribed time.
Each of these templates can be used as‑is or mixed to reflect a more complex arrangement. By selecting the sections that correspond to the type of goods, the sales channel, the required insurance, the commission structure and any regulatory constraints (food safety, art provenance, franchise branding, export controls), you can craft a Consignment Agreement that protects the consignor’s inventory value, gives the consignee clear operating guidelines, and provides a solid legal foundation for a successful partnership.
Consignment Agreement Checklist – What to Verify Before Signing
Before the contract gets the last signatures, the consignor as well as the consignee must double-check that the contract is correct with regards to the parties’ names, accurately talks about the inventory (by showing a schedule with SKU, description, quantity and estimated value), mentions the consignment period and any rights for renewal or early-termination, indicates the commission rate and the way it is calculated, provides the reporting and payment schedule (weekly, monthly, per-sale), states who has the risk of loss, theft or damage (including necessary insurance coverage), explains the procedure for returning unsold or damaged goods, contains any price-maintenance or markdown-approval provisions, makes clear tax treatment (sales tax collection and remittance), includes any industry-specific compliance requirements (food-safety, authenticity of art, export-control), and identifies the governing law and dispute-resolution mechanism. Check if the signature blocks are available for witnesses or notarization if it is necessary in your jurisdiction, and then each party should get independent legal counsel, sign in front of the necessary witnesses and have both an original hard copy and a searchable PDF for future reference.
