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A Consignment Agreement lets one party (the consignor) place their goods with another party (the consignee) to sell them, while keeping ownership until the sale happens. Under Dutch commercial law, these agreements help businesses test new markets or expand their reach without opening their own locations.

The consignee typically earns a commission on sales and must follow strict rules about handling the goods, keeping accurate records, and transferring payments. This arrangement is common in Dutch retail, particularly for art galleries, fashion boutiques, and specialty stores. The agreement must clearly state payment terms, duration, and liability details to comply with Netherlands Civil Code requirements.

Consider using a Consignment Agreement when you want to sell products through another business without transferring ownership immediately. This arrangement works perfectly for Dutch artists placing artwork in galleries, designers showcasing fashion items in boutiques, or manufacturers testing new products in retail stores.

The agreement becomes essential when you need flexibility in market testing while maintaining control over your inventory. It's particularly valuable for small businesses entering new markets in the Netherlands without the overhead of their own retail space. The arrangement also helps manage risk during economic uncertainty, as you retain ownership until the final sale.

• Consignment Stock Agreement: Focuses on inventory management and storage terms, commonly used in Dutch wholesale and manufacturing sectors. Includes detailed stock tracking and warehouse requirements.
• Consignment Contract: A simpler retail-oriented agreement that emphasizes sales terms and commission structures. Popular among art galleries, boutiques, and small retailers in the Netherlands. Features flexible pricing and display requirements.

• Consignors (Product Owners): Artists, manufacturers, designers, or suppliers who want to sell their goods through third parties while maintaining ownership until final sale.
• Consignees (Sellers): Retail stores, galleries, boutiques, or showrooms that display and sell consigned items for a commission in the Netherlands.
• Legal Advisors: Dutch lawyers or in-house counsel who draft and review agreements to ensure compliance with local commercial laws.
• Accountants: Financial professionals who track consignment inventory, sales, and tax implications under Dutch accounting standards.

• Product Details: List all items for consignment, including descriptions, quantities, and agreed retail prices under Dutch valuation standards.
• Commission Structure: Define clear payment terms, commission percentages, and settlement periods that comply with Dutch commercial law.
• Storage Requirements: Specify handling, display, and insurance requirements for the consigned goods.
• Duration and Terms: Set agreement length, notice periods, and termination conditions.
• Reporting System: Establish how sales tracking, inventory updates, and financial reporting will work between parties.
• Risk Management: Our platform helps generate agreements that include all essential legal protections under Dutch law.

• Party Information: Full legal names, addresses, and registration numbers of consignor and consignee under Dutch law.
• Property Description: Detailed inventory list with values, conditions, and unique identifiers of consigned items.
• Commission Terms: Clear percentage rates, payment schedules, and VAT considerations.
• Risk and Insurance: Liability allocation and mandatory insurance requirements per Dutch commercial code.
• Duration Clauses: Agreement period, renewal terms, and termination conditions.
• Dispute Resolution: Choice of Dutch law, jurisdiction, and mediation procedures.
• Signatures: Proper execution blocks with date and place of signing.

A Consignment Agreement differs significantly from an Agency Agreement in Dutch commercial law. While both involve one party selling goods on behalf of another, their legal structures and responsibilities vary considerably.

• Ownership Structure: In consignment, the consignor retains ownership until final sale, while agency agreements don't involve transfer or temporary possession of goods.
• Risk Allocation: Consignment agreements place storage and handling risks on the consignee, whereas agents typically don't take physical possession or associated risks.
• Commission Basis: Consignment fees apply only to actual sales, while agency agreements often include retainer fees or minimum guarantees.
• Legal Authority: Agents can legally bind their principals in transactions, but consignees can only sell under pre-agreed terms and prices.