# Consignment Forms



## madpoison (Jan 9, 2008)

Can anyone help with creating a consignment form for retailers that are willing to purchase your t-shirts. Or if you have existing consignment forms can you please provide me with a template or an example of one. So I can create one myself. 

Thank you

MP


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## Rummy (Jan 12, 2008)

this was taken off a link someone else posted on these forums... i cant remember the link or the thread.

Sample Consignment Agreement
As a service to our customers, we offer this sample consignment contract for use by artists, crafters and others supplying goods on consignment to art gallery, gift shop, consignment shop or store and other types of customers.
It may also be useful to those starting a consignment shop or any business accepting goods on consignment.
NOTE - This may be formatted using any word processor.
The term Artist can be replaced with Craftsperson, Supplier, Manufacturer, etc.
The term Gallery may be replaced by Store, Shop, etc.
The term Artwork may be replaced by Product, etc.
Most word processing programs have a Search & Replace capability that will make these changes easy. Be sure to proof-read before finalizing.
Some variations and options are shown in ( ) and [ ]. Modify to suit your specific needs and terms.


The form -
The Artist (name, address, and telephone number) and the Gallery (name, address, and telephone number) hereby enter into the following Agreement:
1. Agency; Purposes. The Artist appoints the Gallery as agent for the works of art ("the Artworks") consigned under this Agreement, for the purposes of exhibition and sale. The Gallery shall not permit the Artworks to be used for any other purposes without the written consent of the Artist.
2. Consignment. The Artist hereby consigns to the Gallery, and the Gallery accepts on consignment, those Artworks listed on the attached Inventory Sheet which is a part of this Agreement. Additional Inventory Sheets may be incorporated into this Agreement at such time as both parties agree to the consignment of other works of art. All Inventory Sheets shall be signed by Artist and Gallery.
3. Warranty. The Artist hereby warrants that he/she created and possesses unencumbered title to the Artworks, and that their descriptions are true and accurate.
4. Duration of Consignment. The Artist and the Gallery agree that the initial term of consignment for the Artworks is to be____(months), and that the Artist does not intend to request their return before the end of this term. Thereafter, consignment shall continue until the Artist requests the return of any or all of the Artworks or the Gallery requests that the Artist take back any or all of the Artworks with which request the other party shall comply promptly.
5. Transportation Responsibilities. Packing and shipping charges, insurance costs, other handling expenses, and risk of loss or damage incurred in the delivery of Artworks from the Artist to the Gallery shall be the responsibility of the (specify Gallery or Artist), and in their return to the Artist, shall be the responsibility of the (specify Gallery or Artist).
6. Responsibility for Loss or Damage, Insurance Coverage. The Gallery shall be responsible for the safekeeping of all consigned Artworks while they are in its custody. The Gallery shall be strictly liable to the Artist for their loss or damage (except for damage resulting from flaws inherent in the Artworks), to the full amount the Artist would have received from the Gallery if the Artworks had been sold. The Gallery shall provide the Artist with all relevant information about its insurance coverage for the Artworks if the Artist requests this information. [Gallery shall have Artist named an "Also Insured" on it's insurance policy, to the extent of the Artist's amount due for the total consignment.]
7. Fiduciary Responsibilities. Title to each of the Artworks remains in the Artist until the Artist has been paid the full amount owing him or her for the Artworks; title then passes directly to the purchaser. All proceeds from the sale of the Artworks shall be held in trust for the Artist. The Gallery shall pay all amounts due the Artist before any proceeds of sales can be made available to creditors of the Gallery.
8. Notice of Consignment. The Gallery shall give notice, by means of a clear and conspicuous sign in full public view, that certain works of art are being sold subject to a contract of consignment.
9. Removal from Gallery. The Gallery shall not lend out, remove from the premises, or sell on approval any of the Artworks, without first obtaining written permission from the Artist.
10. Pricing; Gallery's Commission; Terms of Payment. The Gallery shall sell the Artworks only at the Retail Price specified on the Inventory Sheet. The Gallery and the Artist agree that the Gallery's commission is to be____ percent of the Retail Price of the Artwork. Any change in the Retail Price, or in the Gallery's commission, must be agreed to in advance by the Artist and the Gallery. Payment to the Artist shall be made by the Gallery within___days after the date of sale [by the last day of the month of sale] (by the ___day of the month following the month of sale) of any of the Artworks. The Gallery assumes full risk for the failure to pay on the part of any purchaser to whom it has sold an Artwork.
11. Promotion. The Gallery shall use its best efforts to promote the sale of the Artworks. The Gallery agrees to provide adequate display of the Artworks, and to undertake other promotional activities on the Artist's behalf, as follows:
[Enter any agreed promotional activities]
The Gallery and the Artist shall agree in advance on the division of artistic control and of financial responsibility for expenses incurred in the Gallery's exhibitions and other promotional activities undertaken on the Artist's behalf. The Gallery shall identify clearly all Artworks with the Artist's name, and the Artist's name shall be included on the bill of sale of each of the Artworks.
12. Reproduction. The Artist reserves all rights to the reproduction of the Artworks except as noted in writing to the contrary. The Gallery may arrange to have the Artworks photographed to publicize and promote the Artworks through means to be agreed to by both parties. In every instance of such use, the Artist shall be acknowledged as the creator and copyright owner of the Artwork. The Gallery shall include on each bill of sale of any Artwork the following legend: "All rights to reproduction of the work(s) of art identified herein are retained by the Artist."
13. Accounting. A statement of accounts for all sales of the Artworks shall be furnished by the Gallery to the Artist on a regular basis, in a form agreed to by both parties, as follows: (specify frequency and manner of accounting).
[The artist will supply an Inventory Sheet showing retail price and Artist's amount due for each item. Gallery will complete Inventory Sheet and return to Artiat with payment of Artist's amount due for missing items by the ___ day of each month.]
The Artist shall have the right to inventory his or her Artworks in the Gallery and to inspect any books and records pertaining to sales of the Artworks at any time during the Gallery's normal business hours.
14. Additional Provisions.
[Enter any additional provisions]
15. Termination of Agreement. Notwithstanding any other provision of this Agreement, this Agreement may be terminated at any time by either the Gallery or the Artist, by means of written notification of termination from either party to the other. In the event of the Artist's death, the estate of the Artist shall have the right to terminate the Agreement. Within thirty days of the notification of termination, all accounts shall be settled and all unsold Artworks shall be returned by the Gallery.
16. Procedures for Modification. Amendments to this Agreement must be signed by both Artist and Gallery and attached to this Agreement. Both parties must initial any deletions made on this form and any additional provisions written onto it.
17. Miscellany. This Agreement represents the entire agreement between the Artist and the Gallery. If any part of this Agreement is held to be illegal, void, or unenforceable for any reason, such holding shall not affect the validity and enforceability of any other part. A waiver of any breach of any of the provisions of this Agreement shall not be construed as a continuing waiver of other breaches of the same provision or other provisions hereof. This Agreement shall not be assigned, nor shall it inure to the benefit of the successors of the Gallery, whether by operation of law or otherwise, without the prior written consent of the Artist.
18. Choice of Law. This Agreement shall be governed by the law of the State of _____________ .

______________________________ (Signature of Artist)

______________________________ Date

____________________________ (Signature of authorized representative the Gallery)

____________________________ Date
NOTE - It is strongly suggested that you have a simple Inventory Sheet, showing item number or code, description, retail price and Consigner's Amount Due for each item. Have the initial one signed when signing the agreement. Then, monthly, either visit the gallery personally, or mail a copy to the gallery for them to take inventory and remit payment for MISSING items, not just SOLD items. This agreement makes perfectly clear they are totally responsible for any missing items, regardless of cause.

hope that helps 
Alex


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## madpoison (Jan 9, 2008)

Thanks Rummy you are a big help. If there is anything I can help you out with let me know.


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## peteVA (Nov 11, 2007)

I didn't read that whole thing, but here are two things to make sure is covered - 

If it's gone they owe. You will sometime hear "We didn't sell that." No, maybe they took it home, gave it away or stuck the money in their pocket. But they still owe you for it. I tell them "sold or stold, you still owe".

If there is a significant investment on your part, get them to call their insurance agent an have you added as an "also insured". It costs them nothing, but covers you to the extent of the value of your inventory in case of fire or theft, etc. Same as a bank or finance company on a car or home.
.


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## Cloud9 Design (Aug 29, 2007)

Great thread. Wonderful information!


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