Please email us if you would like to make suggestions for adding or changing this Agreement.
A Consignment Agreement between two parties is a good contract only if both parties are satisfied with the end results. A consignment contract should specify obligations and rights equally.
Items that should be covered in the agreement are:
- The Agreement should stipulate a price and whether the item is to be discounted with the passage of time. Typically an item is marked down if it has not sold within 30 days and every 30 days thereafter, discounting in increments of 10% (based upon the original sale price).
- The consignment form should include the commission amount to be paid to the consignor and consignee. Commission percentages vary and are determined by both parties. Some shops impose a 'buyers fee' which is deducted from the sale proceeds prior to applying the shops commission percentage.
- The form should include the periodicity of settlements. This is typically done monthly with checks to consignors be made for the previous months sales.
- Set the duration of the term of consignment. When does it begin? How long does it last? Who pays shipping, handling, packing, insurance, and other costs, if any?
- Every state has adopted the Uniform Commercial Code (UCC) that protect consignments. If damage to artwork due to the gallery's negligence, the gallery must pay for the loss. If the damage is not the gallery's fault (flood, fire, theft, etc) courts in that state must decide.
These and any other issues should be spelled out in written form in the consignment agreement. Each party should have a copy signed by both parties.
Here's a Sample Consignment Form:
1. Retained Fees: GENERAL MERCHANDISE: Sixty percent (60%) of the selling price of each consigned item shall be retained by ___________________."
2. LIABILITY: ______________ assumes no liability for the loss, damage to, or destruction of any item consigned.
3. IMPERFECT MERCHANDISE: items in need of repair or cleaning may, without notice, be donated. DONATION RECEIPTS AVAILABLE ON REQUEST ONLY.
4. PICKUPS: Consignor must give a minimum of two (2) days notice before pickup. CONSIGNORS WILL BE RESPONSIBLE FOR PULLING ALL ITEMS TO BE PICKED UP.
5. PICKUPS: Consignor must pick up all unsold items within three (3) months from the date of consignment or renew for another 90 days. All unsold items not picked up after the end of the contract period will, WITHOUT FURTHER NOTICE, automatically become property of ____________________.
6. RENEWABILITY: This Consignment Agreement is renewable ONCE ONLY! Maximum consignment length is 180 days.
7. PRICE REDUCTIONS: All items consigned may be subject to a price reduction at the discretion of __________________.
8. CONSIGNMENT PAYMENT WILL BE VOIDED 180 DAYS AFTER AGREEMENT TERMINATION.
9. CONSIGNMENT CHECKS: Checks are issued monthly after the 15th for the prior whole month.
10. RECORD KEEPING AND FOLLOW UP CALLS: It is the responsibility of the consignor to maintain all records of consigned merchandise and call not less than once a month after the 15th to confirm sales, pickups, and contract termination.
11. All transactions and resolutions to disputes will take place in (city, state).
ALL ITEMS MUST BE PICKED UP BY TERMINATION DATE UNLESS CONSIGNMENT IS EXTENDED - NO EXCEPTIONS.
