Consignment Agreement printable pdf download

CONSIGNMENT AGREEMENT

This Consignment Agreement (this “Agreement”) is made as of this ____ day of ________,

20__ by and between ABC, Inc. an Illinois corporation (the “Company”), and XYZ, Inc., a

Wisconsin corporation (the “Consignee”).

WHEREAS, the Company desires to consign to the Consignee certain goods set forth on

Schedule 1 attached hereto (the “Consigned Goods”), for the purpose of facilitating a sale of the

Consigned Goods by the Consignee; and

WHEREAS, the Consignee desires to accept delivery of the Consigned Goods and to remit

payment to the Company upon the use of such goods on the terms and subject to the conditions

set forth in this Agreement.

NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of

which the parties hereto both acknowledge, the Company and the Consignee hereby agree as

follows:

Consignment of Goods; Forecasts. The Company shall deliver the Consigned Goods for

consignment to the Consignee, F.O.B. the Consignee’s plant. The Consignee shall accept

delivery of the Consigned Goods, and ACKNOWLEDGES THAT IT TAKES POSSESSION OF

THE CONSIGNED GOODS SOLELY ON A CONSIGNMENT BASIS AND DOES NOT

ACQUIRE ANY PROPERTY RIGHT OR SECURITY INTEREST IN SUCH CONSIGNED

GOODS BY REASON OF ITS POSSESSION THEREOF. The Company’s consignment of the

Consigned Goods is a true consignment in all respects, and not a consignment intended as a

security. Each month, the Consignee shall submit in writing to the Company a forecast for its

requirements for the Consigned Goods to be supplied in the next 12 months.

Independent Contractor. The Consignee is, and shall remain, an independent contractor

selling to third-party buyers for its own account. The Company does not appoint the Consignee

as its agent or authorize the Consignee to hold itself out as its agent, and does not convey to the

Consignee any property interest in the Company’s corporate name, trademarks, or goods.

Sale of and Title to Consigned Goods.

Purchase of Consigned Goods by the Consignee. The Company shall retain title to,

and the right to immediately possess, the Consigned Goods until the Consignee purchases such

goods from the Company. The Consignee shall purchase the Consigned Goods in accordance

with the price list, set forth in Schedule 1 hereto, as such Schedule may be amended on ___ days

notice by the Company. The Consignee’s purchase of the Consigned Goods from the Company

shall be deemed to occur immediately upon the Consignee’s usage, sale, transfer, further

consignment, transfer or disposition of the Consigned Goods (and for purposes of this

Agreement, the term “usage” shall also include all sales, transfers, further consignments,

transfers or dispositions of the Consigned Goods).

Passing of Title. Title to the Consigned Goods purchased hereunder shall pass

from the Company to the Consignee upon the Consignee’s usage of such goods.

Right to Inspection. The Company has the right to inspect the Consignee’s

inventory of Consigned Goods at any time during the Consignee’s normal business hours with

Consignment Agreement