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A Consignment Agreement lets one party (the consignor) place their goods with another party (the consignee) to sell them on their behalf. Under Australian commercial law, the consignor keeps ownership of the items until they're sold, while the consignee typically earns a commission on each sale.

These agreements are common in retail, art galleries, and second-hand shops across Australia. They spell out key details like payment terms, sales targets, and how to handle damaged goods. The arrangement helps sellers reach new markets without opening their own stores, while giving retailers inventory without buying it outright.

Use a Consignment Agreement when you want to sell products through another business without transferring ownership right away. This setup works perfectly for artists placing artwork in galleries, manufacturers testing new retail markets, or boutiques selling high-end fashion items in Australia.

The agreement becomes essential when dealing with valuable inventory or unique items where maintaining ownership control matters. It protects both parties by clearly defining commission rates, handling procedures, and liability for damaged goods. Many Australian retailers and suppliers choose this model to expand their reach while managing cash flow and inventory risks effectively.

• Simple Consignment Agreement: Basic version for straightforward arrangements, covering essential terms without industry-specific clauses
• Consignment Stock Agreement: Focused on inventory management and stock control procedures for retail businesses
• Consignment Store Contract: Tailored for retail shops, with detailed commission structures and store display requirements
• Consignment Contract For Artists: Specifically designed for artwork sales, including provisions for exhibitions and pricing
• Consignment Inventory Agreement: Comprehensive version with detailed inventory tracking and reporting requirements

• Consignors (Suppliers): Manufacturers, artists, designers, and wholesalers who want to sell goods through third parties while retaining ownership
• Consignees (Retailers): Retail stores, galleries, boutiques, and marketplaces that display and sell items on behalf of consignors
• Legal Advisors: Lawyers and in-house counsel who draft and review agreements to ensure compliance with Australian consumer law
• Business Managers: Retail operations managers who oversee inventory tracking and commission payments
• Accountants: Financial professionals who handle GST reporting, commission calculations, and inventory valuation

• Identify Parties: Gather full legal names, ABNs, and contact details for both consignor and consignee
• List Items: Detail all products, including descriptions, quantities, and agreed retail prices
• Payment Terms: Specify commission rates, payment schedules, and GST arrangements
• Operational Details: Document handling procedures, storage requirements, and display guidelines
• Risk Management: Outline insurance requirements, damage policies, and return procedures
• Duration: Set agreement length, renewal terms, and termination conditions
• Review Process: Use our platform to generate a legally compliant agreement that covers all essential elements

• Party Details: Full legal names, ABNs, and addresses of consignor and consignee
• Goods Description: Detailed inventory list, pricing structure, and condition assessment
• Commission Terms: Clear percentage rates, payment schedules, and GST arrangements
• Risk Allocation: Insurance requirements, liability provisions, and loss prevention measures
• Operational Terms: Storage conditions, display requirements, and handling procedures
• Duration & Termination: Agreement length, renewal options, and exit conditions
• Dispute Resolution: Australian jurisdiction clause and conflict resolution process
• Signatures: Execution blocks for authorized representatives with dates and witness provisions

A Consignment Agreement differs significantly from a Commission Agreement. While both involve payment for sales, their core structures and ownership arrangements are quite different. Let's explore the key distinctions:

• Ownership Structure: In consignment, the consignor retains ownership until final sale. With commission agreements, the seller typically owns the goods outright
• Risk Distribution: Consignment arrangements place inventory risk mainly on the consignor, while commission agreements often shift more risk to the seller
• Payment Timing: Consignment payments happen after customer sales, whereas commission agreements might include upfront payments or guaranteed minimums
• Legal Obligations: Consignment agreements require specific provisions for goods handling and return, while commission agreements focus more on sales targets and performance metrics
• Tax Treatment: Under Australian tax law, GST implications differ significantly between these arrangements, particularly regarding when tax obligations arise