Consignment: what is this form of sale of goods?

click fraud protection

consignment contract - a document, which is to implement the purchase / sale in the foreign trade.Legislation of the Civil Code it is not expressly provided for.In fact, this legal agreement mingled (n. 3 of Art. 421 of the Civil Code).The parties hereto agree according to the rules, the elements of which are contained in the mixed contract.Basically consignment agreement defines the relationship the supplier (seller) and the distributor (the buyer).For this reason, it is possible to apply the provisions of the Civil Code of the supply agreement.

This document also contains elements of a commission agreement.Typically, it contains signs of storage contract, in the event that the goods will be kept in stock from third parties.In some cases, the consignee acts as a custodian.Agreement on consignment goods may contain certain elements of the agreement on the provision of services - monitoring of market, marketing, shipping, freight forwarding, and so on.

term "consignment»

This term has a lot of meanings.This word can be called the document a special procedure for payment and delivery of goods, mediation agreement, agency contract, and much more.Due to the extensive interpretation of the term "consignment" - that is, in fact, it is not easy to define.Sometimes it becomes a cause of litigation.You can explain this business practice.If the subject of the contract is determined consignment, then all the stakeholders will clearly understand what their obligations, but if specific terms of cooperation are not specified, it becomes clear the difference between the signed agreement, for example, from the Commission or supplies.

Consignment as a form of sale of goods

should be considered as a form of consignment sale of goods, under which the owner of the goods passes it available for sale to the buyer.At the same supplier and remains the owner of the products delivered to the consignee during the whole period of the goods at the latest.Agreement on consignment sale of goods should clearly define this point.That is a definition or any other similar to it should definitely be reflected in the text of the agreement.

What is the advantage of a consignment contract

agreement to sell the products in which the rights of ownership to it remain with the supplier called consignment.What is not normal delivery, is understandable.That is, the buyer becomes the owner of the delivered products at the time of its transfer to him.It turns out that the exporter can always withdraw from the consignee unrealized warehouse goods, if the latter would be insolvent counterparty.This is the advantage of choosing such an agreement.

Features payment for the goods when it is transferred to the contractual

Payment consignment delivered products are made for accounts receivable, ie in installments.In some cases, as a way to secure the obligations of selected price collusion, unilateral repudiation, agreements and other punitive measures.

Terms of Agreement

The consignment agreement may contain terms not only of implementation, storage, and product promotion in a particular area.In this case, the sales representatives are in direct contact with the points of sale for the sale of goods.As sales representatives or employees are the supplier or the buyer.Allowed involvement of intermediaries, which is a contract for onerous provision of services and the document of liability.

Often consignment, that it is commercial practice is already known, includes provisions stipulating the procedure for advertising goods.Here include the following: implementation of draws, tastings, test drives and other promotional activities with the participation of interested consumers.The agreement also reflects the conditions of the time and place of an advertising campaign, of controlling the availability of the goods at the point of sale, its computation, and so on.

form of agreement

occurrences of partially used and returned consignment.What kind of shape and how they affect the marketing of goods?Part of the return consignment imply an obligation for the buyer to purchase from the supplier an agreed amount of unsold goods.In permanent form consignee does not give the right to return unsold goods, it must be purchased them in full.

however, solve the problem of guaranteed sales using the form consignment will leave.Clearly, if the consignee can not successfully sell the goods, the partners will analyze the current situation to determine the cause of failure.As a rule, the main factor is the lack of competitiveness of low demand products - inadequate technical level of products, high prices, much more.