A consignment contract typically includes the names and addresses of the parties to the contract, the specifications of the consignment merchandise and the terms of the contract, according to the Houston Chronicle. It also includes a payment structure and the procedure for disposing of unsold merchandise.Continue Reading
A consignment contract typically begins with the name, address and telephone number of the store owner and the consigner, as the Houston Chronicle states. The contract spells out the merchandise that these parties deal with and the acceptable standards for such merchandise. The contract specifies the period of the consignment, the procedure for pricing merchandise and the merchandise markdown schedule. Typically, consignment contracts deal with gently used and seasonal merchandise.
A consignment contract outlines a payment plan for the materials sold, including the percentage of the sale that the store owner and consigner take, notes the Houston Chronicle. The contract specifies the procedure for splitting income obtained from items that sell below their marked price. The contract also outlines the policy for dealing with merchandise that remains unsold beyond a specified period. The contract may require the consigner to pick up unsold merchandise or allow the store owner to donate such merchandise to non-profit organizations.Learn more about Law