Goods Consignment Agreement (Page 2 of 3) in pdf

7. Sales. Consignee shall undertake sales on credit only to customers judged by

Consignee to be good credit risks.

8. Compensation. Consignee’s compensation is the amount of the difference between

Company’s invoice price to Consignee and the price at which Consignee sells the

goods to customers.

9. Risk of Loss. Consignee shall assume all risk of loss for damage to or destruction of

the consigned products from any cause whatsoever from the time Consignee receives

possession of the goods until sale and delivery to a customer or until return to

Company.

10. Return of Goods. At all times, consigned goods shall be subject to Company’s

direction and control. On Company’s demand for the return of any unsold goods

consigned to Consignee under this Agreement, Consignee shall promptly return such

goods to Company. If Consignee finds any consigned goods to be unsalable,

Consignee may return them to Company with Company’s prior consent in writing.

Company shall bear the expense for the return of any consigned goods.

11. Records. Consignee shall keep accurate records showing

(a) all goods received from Company on consignment with the consignment

invoice price;

(b) all sales to customers with the names of the customers, quantities purchased,

and the terms of the sale;

(d) all goods returned by or repossessed from customers together with credits

allowed; and

(e) all goods returned to Company and resulting credits.

Consignee shall allow Company’s representatives to have access to the records on

demand and, in addition, shall permit them at reasonable times to inventory the consigned

goods in Consignee’s possession.

12. Accounting and Remittance. Consignee shall render to Company not later than the

15th day of each month an accurate, detailed account of all sales of goods made from

the consigned stock of the previous month, together with returns and repossessions, if

any. Simultaneously with the accounting, Consignee shall remit to Company a sum

equal to the consignment invoice price of all goods sold, less usual trade discount

allowed.

Goods Consignment Agreement Page 2