������Ƶ

A Consignment Agreement lets a business owner (the consignor) place their products with another business (the consignee) to sell them without transferring ownership. Under Danish commercial law, the consignee acts as an agent, displaying and selling the items while collecting a commission on each sale, typically between 20-40% of the selling price.

These agreements are common in Danish retail, especially for artwork, luxury goods, and vintage items. The consignor keeps legal ownership until the final sale, protecting their interests if the consignee faces bankruptcy. The agreement must clearly state payment terms, commission rates, and handling of unsold items to comply with Danish contract regulations.

Use a Consignment Agreement when you want to sell products through another business without giving up ownership. This arrangement works perfectly for testing new markets or expanding your reach in Denmark without opening your own store. It's especially valuable for artists, craftspeople, and specialty retailers who need to showcase items in established locations while maintaining inventory control.

The timing is crucial - put this agreement in place before any goods change hands. Danish law requires clear documentation of ownership and commission structures to protect both parties. This becomes particularly important when dealing with high-value items or when expanding into multiple retail locations across different Danish municipalities.

• Fixed-Term Consignment: Commonly used in Danish retail for seasonal goods, setting specific start and end dates with automatic return policies
• Open-End Retail Consignment: Popular among boutiques and galleries, allowing flexible duration with rolling inventory updates
• Commission-Variable Agreement: Adjusts payment rates based on sales volume or product categories, common in luxury retail
• Multi-Location Consignment: Enables consignors to place goods across several stores while maintaining unified terms
• Digital Sales Consignment: Combines physical store placement with online sales rights, including specific terms for e-commerce

• Product Owners (Consignors): Artists, manufacturers, or suppliers who want to sell goods through established retail channels while maintaining ownership
• Retail Stores (Consignees): Shops, galleries, or boutiques that display and sell consigned items for a commission without purchasing inventory
• Business Lawyers: Draft and review agreements to ensure compliance with Danish commercial law and protect both parties' interests
• Accountants: Handle financial reporting, tax implications, and inventory tracking for both consignor and consignee
• Insurance Providers: Offer coverage for consigned goods while in the consignee's possession

• Product Details: List all items with descriptions, condition, and agreed retail prices
• Commission Structure: Define exact percentages, payment schedules, and any volume-based adjustments
• Duration Terms: Specify agreement length, renewal options, and notice periods for termination
• Insurance Coverage: Document who covers insurance costs and minimum required coverage levels
• Display Requirements: Detail how items should be presented, stored, and maintained
• Return Policy: Outline procedures for unsold items, including timing and shipping responsibilities
• Sales Reporting: Establish how and when sales reports must be provided to the consignor

• Party Identification: Full legal names, addresses, and business registration numbers of consignor and consignee
• Property Description: Detailed inventory list with item values and unique identifiers
• Commission Terms: Clear percentage rates, payment schedules, and calculation methods
• Risk Allocation: Specific responsibilities for loss, damage, or theft under Danish liability laws
• Duration & Termination: Agreement period, renewal options, and notice requirements
• Sale Proceeds: Handling of payments and VAT requirements under Danish tax law
• Dispute Resolution: Choice of Danish jurisdiction and applicable conflict resolution methods

A Consignment Agreement differs significantly from an Agency Agreement, though both involve one party selling goods on behalf of another. Here are the key distinctions that matter under Danish law:

• Ownership Structure: In consignment, the consignor keeps full ownership until final sale, while agency agreements don't involve transfer of physical goods to the agent
• Risk Allocation: Consignees handle physical inventory and bear storage risks, whereas agents typically only facilitate sales without taking possession
• Payment Model: Consignment deals involve direct product sales with commission splits, while agency agreements usually feature commission-only structures for connecting buyers and sellers
• Legal Authority: Agents can often negotiate and bind their principals legally, while consignees must stick to preset prices and terms
• Regulatory Framework: Agency agreements fall under Danish Agency Law with specific protections for agents, while consignment operates under general commercial law