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Publication date: 05.05.2024
I am studying in the third year of the State University of Economics and Technology.I specialize in contractual, economic and corporate law, in particular, I provide consultations and write articles.
Consignment as a type of mediation includes the transfer of goods from the manufacturer or supplier to the consignment warehouse of the intermediary (consignor) for the purpose of further sale of these goods. Special conditions that characterize consignment as a type of mediation through consignment warehouses of intermediaries may include the following:
Transfer of ownership: In the case of consignment of goods to a consignment warehouse, ownership of the goods remains with the manufacturer or supplier until the moment of their sale to the final consumer. An intermediary (consignor) acts as an agent selling goods in the name and for the benefit of the manufacturer or supplier.
Putting goods up for sale: Goods in the consignment warehouse can be put up for sale without the need to hand them over to the consignor. He has the right to sell goods and transfer the proceeds to the manufacturer or supplier, after deducting commissions.
Commission fee: The consignor may receive a commission fee for services for the sale of goods at the consignment warehouse. This is usually a percentage of the sales volume or a fixed amount for each unit of the product.
Return of unsold goods: If, after a certain period, certain goods have not been sold, they may be returned to the manufacturer or supplier, who may later ship them to other markets or sell them through other intermediaries.
Reimbursement: The agreement between the manufacturer or supplier and the consignor may contain provisions for reimbursement of storage, transportation and advertising costs of the goods.
The conclusion of a consignment contract is an important step in establishing legal relations between parties involved in the transfer and sale of goods through consignment warehouses. Here are the main stages and important aspects of concluding such a contract:
Identification of the parties: In the consignment contract, the parties must be clearly identified - the manufacturer or supplier of the goods (the consignor) and the consignor who accepts the goods for consignment. usually the parties to the consignment contract are business entities, which can be manufacturers, suppliers, distributors or other commercial organizations. This is due to the fact that a consignment agreement is usually of a commercial nature and involves the transfer of goods or property for the purpose of further sale and profit.
Description of goods: The contract must contain a detailed description of the goods to be consigned. This may include name, quantity, quality characteristics, articles, prices, etc.
Terms of delivery: The contract must specify the terms of delivery of goods on consignment, including the place of delivery, date of transfer, conditions of storage and transportation of goods.
Ownership and risks: The agreement should clearly define that ownership of the goods remains with the manufacturer or supplier until they are sold, and what risks each party bears.
Terms of sale: The contract must specify the terms of sale of goods, including prices, payment terms, terms of return of unsold goods, commissions, etc.
Terms of the contract: The contract must establish the terms of its validity, including the terms of sale of goods and return of unsold goods.
Liability of the parties: The agreement should define the liability of the parties for the fulfillment of the terms of the agreement, including reimbursement of costs and damages in the event of a breach of the terms.
Other Terms: The Agreement may contain other additional terms that the parties deem appropriate, such as terms regarding advertising and marketing, confidentiality, etc.
Signing and certification: After agreeing on all terms of the contract, it must be signed by representatives of both parties and may be notarized depending on the requirements of the law.
Lawyer services when concluding contracts:
The lawyer help may be needed at the stage of checking the counterparty through the use of registers, which will allow establishing the reputation of the person. The lawyer will also draft a contract and Legal analysis of the situation that will meet not only the requirements of the law, but also the interests of the parties. Therefore, legal services when concluding a contract are extremely important, because they will allow you to build strong contractual legal relations.
