[manufacturer], referred to as SELLER, and [person receiving goods], referred to a CONSIGNMENT MERCHANT, agree:
[manufacturer] consigns to [person receiving goods] the following goods:
[describe goods]
The title shall remain in the SELLER at all times until a final sale. SELLER may recall and take possession of the consigned property at any time.
Insurance Clause (optional)
State if CONSIGNMENT MERCHANT has responsibility
to maintain insurance with SELLER listed as "Loss Payee". Note if
SELLER has the right to maintain such insurance
should CONSIGNMENT MERCHANT fail to maintain it.
CONSIGNMENT MERCHANT shall sell the goods consigned at a price not below $ [minimum sales price].
As compensation, CONSIGNMENT MERCHANT shall receive a commission of [commission rate]% per sale.
CONSIGNMENT MERCHANT shall provide an accounting, under oath, or otherwise
verified, every [number of days between accountings] days
to SELLER. Each accounting shall be accompanied by payment in full
for all amounts due. Should any sums not be paid when due, then
SELLER shall have the right, but not obligation, to repossess all merchandise
of SELLER's in CONSIGNMENT SELLERS possession. All sums
due, but unpaid, shall bear an interest rate of [rate, e.g. 10%].
CONSIGNMENT MERCHANT shall permit an audit by representatives of [manufacturer]
of all of its books and records, together with a physical
inspection of the premises and inventory of goods at such times as
SELLER may desire.
CONSIGNMENT MERCHANT herewith grants a lien to SELLER in the proceeds of the sales of SELLER's goods.
The proceeds of the sale of the goods of SELLER shall be deposited in
a special escrow account and shall not be commingled with the funds of
[person receiving goods], or the funds of others. [person receiving
goods] shall provide proof of compliance with this requirement by forwarding
proof of said account's being opened, and shall also request that the
banking institution provide to [manufacturer] a copy of each periodic bank
statement directly. The funds received shall be deemed to be trust
funds and shall be deemed top be held in trust and for the sole benefit
of
[manufacturer]. [person receiving goods] is authorized, provided that
all accountings are timely filed and all sales proceeds have been
deposited to withdraw its commission from the account. However, should
any instruments accepted by [person receiving goods] not be
honored, [person receiving goods] shall remain liable to repay the
same.
This agreement is for "sale or return." CONSIGNMENT MERCHANT shall have
[number of days allowed for return] days from the date of
delivery of the consigned goods to either sell or pay for the goods,
or return the same. Should CONSIGNMENT MERCHANT fail to pay or return
the same within such time period, then the goods shall be deemed to
be purchased by CONSIGNMENT MERCHANT, and shall be paid for
within 30 days, net.
Freight for return shall be paid by SELLER. SELLER shall have the right to designate the carriers.
This agreement shall not be construed to provide a dealership or franchise
in CONSIGNMENT MERCHANT. SELLER shall be free to sell on
whatever terms it may desire, the goods or other lines sold herein,
to any entities that it may desire. Unless under a separate writing a dealership
or franchise is provided, [person receiving goods] shall have no such
rights under this agreement.
Further, [manufacturer] shall not be obligated to ship any further goods
unless it so desires. [manufacturer] during the course of this agreement
may requested, and [person receiving goods] agrees to provide a financial
statement showing its current financial status, to [manufacturer].
Although the financial statement shall not be required to be an audited
one, a statement under oath shall accompany the same stating that the
statements are materially true and correct.
[person receiving goods] herewith authorizes [manufacturer] to file
such financing statements or any other documents or official filings that
may
be required and [manufacturer] may execute these on behalf of [person
receiving goods].
Dated: __________________
___________________________________________
For [manufacturer]
___________________________________________
For [person receiving goods]
© 1996-1997 LawSmart.Com. All
Rights Reserved.
No claim to copyright is made for
government documents.