CONSIGNMENT AGREEMENT: example of a form that may be used to document
an agreement for a consignee to sell and distribute a manufacturer’s merchandise
[Referring to Section Four of the agreement. This particular agreement anticipates that the
consignee remits the gross sale proceeds to the principal, with an accounting, (paragraph B) and
that the principal pays the consignee a commission, on the prior period sales (paragraph C). A
more usual arrangement would be for the consignee to remit net proceeds, retaining the
The form is easily amended by eliminating paragraph C and adding after the words "sale of
goods" in paragraph B the following language: ",net of commissions for such sales in accordance
with the commission schedule set forth in Exhibit ________, which is attached to this
Agreement made, effective as of ________[date], by and between ________ [name], of
________[address], City of ________, County of ________, State of ________,
subsequently referred to as principal, and ________[name], of ________[street address],
________[city], ________[county], ________[state], subsequently referred to as
The parties recite and declare:
A. Principal conducts a manufacturing business described as follows: ________.
B. Principal desires to arrange for the sale and distribution of its merchandise
C. Consignee has agreed to undertake the marketing of principal’s merchandise on the
terms set forth in this agreement.
In consideration of the above recitals, the terms and covenants of this agreement, and
other valuable consideration, the receipt of which is acknowledged, the parties agree as
Consignee shall have the exclusive right to sell and distribute principal’s merchandise
throughout ________[territory] during the term of this agreement.