Sample Consignment Sales Agreement Letter

Make sure that you get this document reviewed by an attorney if it involves significant amount of money. You may want to hire an attorney to add extra terms about the non-payment or delivery, remedy, damage disclaimers etc.


This agreement is between [Company name with address] and, [party name with address].

This Agreement is effective from [date effective], and stays effective until [end date].

It is hereby made known that [Company Short Name], and [Party Short Name] hereby agree as follows:

[Company Short Name] agrees to supply the goods mentioned below on or before [delivery deadline] to [Party Short Name] for a consignment basis sales:

– [Describe goods]-

[Company Short Name] additionally agrees to supply subsequent quantity of the abovementioned products as required to keep [Party Short Name]’s stock levels at or higher than [reorder level] of the original quantity, by no means to go beyond the original quantity, except otherwise agreed by both parties.

[Party Short Name] agrees to accept all goods delivery set forth above and, to offer the goods for sale. [Party Short Name] accepts responsibility for all expenses of storage, sale, taxes, delivery to customer and indemnity on and of the goods while in [Party Short Name]’s custody.

[Party Short Name] agrees to give [Company Short Name] a full account statement on the [day] day of each month, for all goods sold, misplaced, stolen or damaged for any reason in the previous month, and to pay [Company Short Name] $[amount] per item.

The conditions of this Agreement shall be divisible and if any is declared to be unlawful, unacceptable, or unenforceable, the rest of this Agreement, disregarding such prohibited, invalid or unenforceable part, shall continue in full force as though such void condition had not existed, unless exclusion of such materially modifies the rights and obligations of the parties, in which case this Agreement shall be considered to be terminated.

The rejection by any party of any violation of any condition of this Agreement by the other shall not be interpreted to be a waiver of that party’s rights for any following infringement of any such condition of a waiver of the provision itself.

This is the complete Agreement between the parties and, revokes, and succeeds all preceding written or verbal understanding, contracts, discussions and any other obligations with respect to the matter covered in this Agreement.

All amendments and adjustments to this Agreement must be signed by both parties.

This Agreement shall be presided over and understood under the laws of the State of [state name].

In any deed or suit to implement any right or remedy under this Agreement or to construe any provision of this Agreement, the winning party shall be entitled to recover its expenses that include the attorney’s fees.

No part of this Agreement shall be interpreted to make either party the representative of the other for any reason whatsoever, other than the sales agreement clearly defined within.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement.

For [Company name]

______________________________________ Date: _______________

Name: _________________________ Title: ______________________

For [Party name]
______________________________________ Date: _______________

Name: _________________________ Title: ______________________

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