Template for consignment terms & conditions (Consignment Contract) [2025]
Clear terms and conditions protect resale and consignment businesses by setting fair rules for pricing, payouts, and inventory management. Build trust, prevent disputes, and scale your resale operation with transparency and compliance.
Terms & Conditions
These are [Company Name]’s general terms for the submission of goods for consignment sale.
Before submitting goods, you must read and accept these terms.
1. Consignment Sale
[Company Name] sells goods on consignment with a revenue split of [X]% to the seller and [Y]% retained by [Company Name].
This means we retain [Y]% of the final sales price for all items sold on your behalf.
We reserve the right to refuse items that we believe do not fit our concept or quality standards.
Pricing
By submitting your items, you agree that [Company Name] sets the initial sales price.
We may adjust the price by up to [20]% during the sales period without notifying you to optimize the likelihood of sale.
2. Sales Period & Retrieval of Unsold Items
Our standard sales period runs for [Number of days in sales period] days.
- During this period, submitted items cannot be retrieved.
- After the sales period ends, you will have [X] days to retrieve or claim unsold items.
- Any items not claimed within this period will transfer ownership to [Company Name], and we may donate, recycle, or otherwise dispose of them at our discretion.
3. Ownership of Items
The consignment customer retains ownership of items until they are:
1. Sold to a buyer, or
2. Purchased directly by [Company Name] (buy-out).
The agreed consignment split remains the same in both cases.
4. Becoming a Consignment Customer
To submit goods for sale, you must confirm that you:
- Are at least [minimum legal age] years old
- Can provide a valid payment method in your own name for commission payouts
- Are the legal and rightful owner of all submitted items and have the right to sell them
- Provide accurate and up-to-date contact information
- Agree to comply with our Quality Criteria (see Section 6)
5. Payment of Sales Commission
- Sales commission will be tracked in your account and updated as items are sold.
- Commission can be used to purchase goods at [Company Name] or requested as a payout.
- Payouts must be requested manually using our designated consignor portal.
- We charge a processing fee of [X currency] [amount] per payout to cover administrative costs.
- Outstanding commission must be claimed within [X months] from the original sales date. After this period, unclaimed amounts are forfeited and revert to [Company Name].
6. Quality Criteria for Submitted Items
We only accept items that fit within our concept and meet quality standards.
General criteria:
- Items must be clean, modern, and in good condition at the time of submission.
- Clothing must be freshly washed, intact, and free from pests or odors.
- Shoes must be cleaned before submission.
We do NOT accept:
- Underwear, swimwear, or workout clothing
- Counterfeit goods or items infringing on intellectual property rights
- Items valued at more than [X currency] [maximum value]
- Items valued at less than [X currency] [minimum value]
- Items exclusively intended for children (if applicable)
If an item is later found to violate our quality criteria:
We will notify you, and you can either:
1. Retrieve the item within [X days], or
2. Allow us to donate the item to charity.
Unclaimed items will be donated after the [X]-day period.
7. Responsibility & Liability
Customer Responsibility
You are responsible for and agree to compensate [Company Name] for any costs or damages resulting from:
- Submitting counterfeit or illegally obtained goods
- Providing false information
- Breaching these terms
Company Liability
[Company Name] is not responsible for:
- Damages arising from your own business operations
- Circumstances beyond our reasonable control
- Issues caused by your failure to fulfill your obligations
- Pests, damages, or defects transferred to your property from purchased items
Maximum liability
- For items sold to a customer: limited to the purchase price
- For consigned items: limited to your share of the agreed sales commission
8. Changes to Terms
[Company Name] reserves the right to update or modify these terms at any time.
Any changes will be communicated via our website or customer portal.
9. Governing Law
These terms are governed by the laws of [Country/Region].
Any disputes shall be handled by the competent courts in [Location].