Consignment Agreement

Consignment Agreement Template for Denmark

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Document background

The Consignment Agreement is a vital commercial document used when a business (consignor) wants to place goods with another business (consignee) for sale without transferring ownership until final sale to customers. This agreement type is particularly relevant in the Danish market where businesses seek flexible inventory management solutions while maintaining control over their products. The document, governed by Danish law, includes comprehensive provisions covering delivery, storage, pricing, commission structures, inventory management, and risk allocation. A Consignment Agreement is especially useful for businesses expanding their distribution network, testing new markets, or managing seasonal inventory, as it provides a balanced risk-sharing mechanism while complying with Danish commercial regulations and EU requirements.

Suggested Sections

1. Parties: Identification of the consignor and consignee, including full legal names, registration numbers, and addresses

2. Background: Context of the agreement and brief description of the business relationship

3. Definitions: Definitions of key terms used throughout the agreement

4. Appointment and Scope: Terms of appointment of the consignee and scope of the consignment arrangement

5. Duration and Termination: Term of the agreement, renewal provisions, and termination rights

6. Delivery and Storage of Goods: Provisions regarding delivery, storage requirements, and handling of consigned goods

7. Title and Risk: Clarity on retention of title by consignor and allocation of risk for the goods

8. Pricing and Commission: Pricing structure, commission rates, and payment terms

9. Sales and Revenue: Process for sales, revenue collection, and remittance to consignor

10. Inventory Management: Requirements for inventory tracking, reporting, and reconciliation

11. Returns and Unsold Goods: Handling of returns and process for dealing with unsold inventory

12. Representations and Warranties: Standard representations and warranties from both parties

13. Liability and Indemnification: Allocation of liability and indemnification obligations

14. Insurance: Insurance requirements for the consigned goods

15. Confidentiality: Protection of confidential information

16. Governing Law and Jurisdiction: Specification of Danish law as governing law and jurisdiction for disputes

17. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment

Optional Sections

1. Customs and International Shipping: Required if goods are being shipped internationally, covering customs requirements and international shipping terms

2. Special Storage Requirements: Needed for goods requiring specific storage conditions (e.g., temperature control, humidity)

3. Marketing and Display: Include when specific requirements exist for how goods should be marketed or displayed

4. Intellectual Property: Required when the consignment involves branded goods or licensed products

5. Data Protection: Include when personal data processing is involved in the consignment arrangement

6. Quality Control: Necessary for goods requiring specific quality maintenance or checking procedures

7. Exclusivity: Include when there are territorial or customer exclusivity arrangements

8. Force Majeure: Optional but recommended, especially for international arrangements or high-value goods

9. Compliance with Regulations: Required when dealing with regulated products or industries

Suggested Schedules

1. Schedule 1 - Products and Pricing: Detailed list of consigned products and their pricing structure

2. Schedule 2 - Commission Rates: Detailed breakdown of commission rates and calculation methods

3. Schedule 3 - Reporting Requirements: Templates and timing for inventory and sales reporting

4. Schedule 4 - Operating Procedures: Detailed procedures for handling, storing, and selling consigned goods

5. Schedule 5 - Storage Locations: List of approved storage locations and their specifications

6. Schedule 6 - Insurance Requirements: Detailed insurance requirements and minimum coverage levels

7. Schedule 7 - Return Procedures: Detailed procedures for handling returns and unsold goods

8. Appendix A - Contact Details: Key contact information for both parties

9. Appendix B - Quality Standards: Detailed quality standards and inspection procedures if applicable

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