The Consignment Form serves as a crucial legal instrument in Indonesian business transactions where one party (consignor) entrusts their goods to another party (consignee) for sale while retaining ownership until the final sale occurs. This document is essential when businesses want to expand their sales channels without direct investment in retail operations, or when retailers wish to minimize inventory risk. The form must comply with Indonesian legal requirements, particularly the Civil Code (KUHPerdata) and trade regulations, while clearly establishing commission structures, operational procedures, and risk allocation. It's commonly used in retail, luxury goods, art, and various other sectors where consignment arrangements are prevalent. The document includes comprehensive terms covering delivery, storage, pricing, commission calculation, reporting requirements, and return procedures for unsold goods.
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1. Parties: Identification of the Consignor and Consignee with complete legal names and addresses
2. Background: Brief context of the consignment arrangement and purpose of the agreement
3. Definitions: Key terms used throughout the agreement including 'Consigned Goods', 'Consignment Period', 'Commission Rate', etc.
4. Consignment Terms: Core terms including duration of consignment, pricing mechanisms, and commission structure
5. Delivery and Storage: Terms regarding delivery of goods, storage requirements, and maintenance responsibilities
6. Title and Risk: Clear statement that title remains with consignor until sale, and allocation of risk for damage or loss
7. Sales and Commission: Process for sales, pricing guidelines, commission calculation, and payment terms
8. Reporting and Accounting: Requirements for inventory tracking, sales reporting, and financial record-keeping
9. Return of Unsold Goods: Procedures and conditions for returning unsold merchandise
10. Termination: Conditions and process for ending the consignment arrangement
11. Governing Law: Specification that Indonesian law governs the agreement
1. Insurance: Requirements for insurance coverage of consigned goods - include when high-value items are involved
2. Marketing and Display: Guidelines for product display and marketing - relevant for retail consignment
3. Exclusivity: Terms regarding exclusive rights to sell certain products - include when exclusive arrangements are agreed
4. Quality Control: Standards for maintaining product quality - important for perishable or sensitive goods
5. Intellectual Property: Protection of trademarks and brands - include when branded products are involved
6. Force Majeure: Provisions for unforeseen circumstances - particularly relevant in uncertain market conditions
1. Schedule A - Inventory List: Detailed list of consigned goods including descriptions, quantities, and agreed prices
2. Schedule B - Commission Structure: Detailed breakdown of commission rates and calculation methods
3. Schedule C - Operating Procedures: Specific procedures for handling, storing, and selling the consigned goods
4. Appendix 1 - Reporting Templates: Standard forms for inventory and sales reporting
5. Appendix 2 - Return Protocol: Detailed procedures for returning unsold goods
6. Appendix 3 - Quality Standards: Specific quality requirements and inspection procedures where applicable
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