Consigment Agreement will protect your rights in getting fair trade. This agreement is used when you are going to sell off your asset but you use someone else’s service to do the sales. It’s hiring someone to sell your asset on your behalf. It makes a convenience way of selling your asset as you don’t need to waste your time in taking care of it, but you need a contract to bind all obligations and rights expected from this form of business relationship.
You can use Consigment Agreement on your asset selling process. It doesn’t matter what kind of thing that you are going to sell, whether it’s your property, vehicle, furniture, or other things. Consigment may seem like a complicated process as you need to find a consignee that can represent you. Moreover, you will need to spend a small share of profit. However, it increases the possibility of having your asset sold faster.
Who Needs Consigment Agreement
Consignment Agreement is about transactional agreement that increases the chances of having your assets find its new owner. Basically, there are two types of people who need to use this agreement as the following:
– People who are in the business of selling things or assets.
– People who prefer to use third party’s service when selling things.
Whichever it is, everyone who uses consignee’s service has their own reason to do so.
What Protection Consigment Agreement Covers
As you are hiring third party to do the selling tasks, it may affect on the content of Consigment Agreement. The following items are only the basic things that must be inserted into the contract.
Detail identity of consignor and consignee.
Outline details of the items.
Deadline of sale for the items, along with information on penalty given if consignee fails to fulfill the schedule.
Commission rate for consignee.
What Protection Does Consigment Agreement Give
If you decide on using consignee’s service in selling your thing, it’s important to have written contract between both parties in order to protect all the responsibilities and benefits that may appear from the partnership. An agreement on the duties and rights must be signed on the first step.
Consigment Agreement is written as protection for both parties. It can also be used as a mean to prevent disagreement that may lead into conflict. With the agreement, you as the consignor can relax at home while your consignee does all the tasks in selling your product. You can download and use this free word template for consignment agreement below.