Document background
The Vendor Consignment Agreement is essential for businesses operating under a consignment model in Malaysia, where vendors wish to place their goods with consignees while retaining ownership until final sale. This arrangement is particularly common in retail, luxury goods, and specialized markets where inventory management and risk sharing are crucial considerations. The document structures the relationship between parties, addressing key aspects such as delivery, storage, pricing, commission, inventory management, and risk allocation. It ensures compliance with Malaysian commercial laws, including the Contracts Act 1950 and Sale of Goods Act 1957, while providing clear operational guidelines and protecting both parties' interests. The agreement is especially relevant in today's evolving retail landscape where flexible inventory management and risk-sharing arrangements are increasingly important.
