Free Consignment Agreement Template

A consignment agreement is a contract that lets one party sell goods that belong to someone else. The owner, called the consignor, keeps ownership until the item sells. On the other side, the consignee displays and markets those goods, then takes an agreed cut of the sale price.

Think of a boutique that stocks a local designer’s dresses, or a gallery that hangs a painter’s work. Neither business buys the inventory upfront. Instead, they earn a commission when something sells, and unsold pieces go back to the owner.

That split of risk is what makes this contract different from a straight sale. Because the consignor still owns the goods, the paperwork has to name who covers loss, theft, and damage on the shelf.

Use one any time you hand goods to another party to sell without transferring ownership. The setup suits owners who want retail exposure without renting shelf space, and shops that want fresh stock without tying up cash.

Common situations include:

• Artists and galleries — the gallery shows the work and keeps a percentage of each sale.
• Designers and boutiques — a shop tests a small collection before committing to a wholesale order.
• Vintage and resale stores — clothing, furniture, and collectibles arrive from individual owners.
• Equipment dealers — a dealer lists machinery or vehicles for an owner who wants a wider market.
• Authors and bookshops — a store carries self-published titles and pays out after each copy sells.

One-off sales fit the model too. Someone downsizing a home, for example, might leave a few antiques with a dealer instead of managing listings and buyers alone.

A strong consignment agreement answers three questions: what is being sold, who gets paid what, and what happens to anything left over. Cover these sections and you have handled most disputes before they start.

Parties and Goods

Name the consignor and the consignee in full, with addresses for each. Then list every item along with its condition, quantity, and any serial or lot numbers. An inventory schedule attached at the end beats a long paragraph, because both sides can initial it.

Commission and Pricing

State the asking price of each item and the percentage the consignee keeps. Also decide who can approve a discount, since a markdown changes what both sides earn. Spell out payment timing as well — some shops pay monthly, while others pay within a set number of days after a sale clears.

Term and Renewal

Set a start date and an end date. Ninety days is a common run in retail, though seasonal goods often move on a shorter clock. Say whether the term renews on its own and how much notice either side gives to end it.

Risk of Loss and Insurance

Since the consignor keeps title, damage and theft need an owner on paper. Decide who insures the goods while they sit on display, and at what value. Note who pays for transport in each direction too.

Returns and Unsold Items

Explain what happens once the term runs out. The consignee might send everything back, extend the listing, or buy the remainder at an agreed price. Add a collection deadline so leftover stock does not linger.

Records and Reporting

Ask for a simple sales report showing what sold, when, and for how much. Access to records keeps the split honest, and it makes tax season easier for both sides.

Signatures

Both parties sign and date the document. Add a witness line if either side wants one, then keep a copy each.

A consignment contract holds up the same way other contracts do: both sides agree to clear terms, sign, and keep a copy. Beyond that, the rules covering consigned goods vary by state, so check your state’s official website before you finalize anything.

Two questions are worth raising wherever you live. Ask what happens to your goods if the shop hits financial trouble. Ownership on paper and possession in practice are not the same thing. Also ask who handles sales tax and reporting, since the answer depends on who counts as the seller in your situation.

For high-value inventory or a relationship that runs for years, a local attorney can explain what protections are available where you operate. A small booth or a handful of items usually needs nothing more than a clear written consignment agreement and an itemized list.

Sign before any goods change hands. That timing matters, because the contract is what proves the items are still yours once they leave your control.

Work through a simple sequence:

1. Review the inventory list together and confirm the condition of each item.
2. Agree on pricing, the commission split, and the end date.
3. Sign and date both copies, then exchange them.
4. Photograph the goods on delivery, so condition is not a matter of memory later.

Some parties want a notarized signature on larger shipments. Ask the other side whether it expects one, and confirm what your own records need.

Electronic signatures work well here, especially when the consignor and the consignee sit in different cities. With Document Genius, you can build your consignment agreement through a step-by-step questionnaire, download it as a PDF or Word file, and send it for signature the same day. Start yours in minutes and get your goods on the shelf.