CONSIDERING that the sender holds the right and ownership of the goods to the shipment (the “merchandise”), two parties generally participate in a shipper contract: the sender and the recipient. The first authorizes the second to store, sell/or use a particular product. The product can be of all kinds: cars, tools, clothes, etc. This agreement sets out the terms of the supply contract and contains the addresses of both parties and an appropriate description of each product that distinguishes it from other similar products. Here are some important good components of a model for consignment contracts: the sender must indicate a minimum price for the product to be shipped. If the recipient sells the product at a lower price, the sender is entitled to the same payment of the minimum price specified in the agreement. The recipient can sell the product below the minimum price, but provided the sender receives the agreed total minimum price. For both the sender and the recipient, the document they sign is “agreement” on issues related to their draft consignment. If previous agreements were to be concluded, priority would be given to the signed agreement. In the case of the shipment sale, the supplier and retailer could monitor returned inventory for certain periods. You can finally set up a firmer mass command that would match both. Ordering the right quantity, selling the right quantity and changing prices if necessary leads to a stronger relationship between supplier and distributor.
What is a consignment contract? A supply contract is a type of contract between two parties, the sender and the recipient, that defines the details of the contract, such as the sale, resale, transportation, storage or use of certain goods. A consignment agreement template is a legally binding agreement between the parties, in which a party known as the recipient agrees to store, sell or transfer goods belonging to the sender. The recipient can be considered the agent of the sender who sells the goods to someone on behalf of the sender.