Document background
The Consignment Agreement is a crucial document for businesses operating under Canadian jurisdiction that wish to establish a consignment sales arrangement. This type of agreement is particularly useful when a business wants to sell products through another party without transferring ownership until the final sale occurs. The agreement covers essential aspects such as delivery terms, pricing mechanisms, commission structures, risk allocation, and reporting requirements. It ensures compliance with Canadian federal and provincial legislation, including the Sale of Goods Act, Personal Property Security Act, and relevant tax laws. The document is designed to protect both the consignor's ownership rights and the consignee's ability to sell the goods effectively, while clearly defining the responsibilities and obligations of all parties involved.
