Consignment or Estimate Contract
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ScribdTranslationsConsignment or Estimate Contract
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ScribdTranslationsConsignment or estimate contract, Summary
The consignment contract is a document by which one person commits to
sell goods of another. This agreement is also known as a partnership contract.
The way this contract operates is very simple. A wholesaler gives a certain retailer
merchandise number. The retailer will be responsible for selling them and subsequently delivering the money
of the sales and return what was not sold. The wholesaler will pay you a commission for this work.
It is very common to use it as it facilitates the sale of the merchandise.
This contract involves two parties: the consignor and the consignee. If you're interested in knowing more,
continue reading and check the elements of this contract, as well as its substitutes. You also
We will provide a free downloadable format with this contract so you can fill it out with your
data.
The estimatory contract is a type of commercial contract that manufacturers or
wholesalers, with retailers, and it consists of one of the parties, called 'tradens', delivering to
the other, called 'accipiens', receives goods to sell within a certain period of time.
Once the deadline has passed, you must pay for the goods you have sold and return the
that has not been sold, or keep them until their sale. The retailer assumes the risk
of damages or defects that the goods may suffer, and if they suffer deterioration or damage,
I would have to pay them to the wholesaler. It must be taken into account that he will receive a consideration.
called commission for the service provided.
This contract has a great practical impact as it constitutes the usual way of operating.
many sectors, but it still represents an alternative to buying and selling without integrating as a
distribution contract in strict sense.
The main difference with an ordinary sales contract lies in the delivery of the
goods that the manufacturer or the wholesaler produces do not transfer ownership to the retailer, but they do
full availability of them.
The consignment contract or estimate provided for in Article 1377 of the Commercial Code,
it assumes the existence of two completely independent contractors, whereby the
the consignee "undertakes the obligation to sell goods" belonging to another called the consignor. The
the consignee receives the goods, not under a sales title, but under a precarious title of consignment
with the obligation or precise task of selling it, and the income resulting from the sale is for the
consignor, after deducting the agreed commission.
Function: The retailer can acquire goods without immediately paying the price.
with the option to return them if they are not sold within the agreed timeframe.
Característcas principales: bilateral, real, oneroso, real, oneroso conmutatvo, de tracto sucesivo,
domain transfer.
The main advantage of this type of contract for retailers is that they do not have to do
disbursement of money until they sell the merchandise. And the main advantage for wholesalers.
and manufacturers, which can be used as a means to enter the market.
Types of consignment contract
The consignment contract is one of the favorites as it does not require a significant investment.
the time to start since the goods are paid for once sold. As in any contract, in
There are also various types, below we will tell you the ones that are most commonly used.
Shoe consignment contract. In this case, boots, sandals and
shoes. This contract applies to this type of merchandise and includes sales deadlines.
according to the fashion seasons.
Automotive consignment contract. Cars can also be consigned and are in fact
those that generate the most profit. This contract is applied by vehicle sales agencies
automobiles.
Furniture consignment contract. Other merchandise that can also be put in
consignation refers to furniture, for example; sofas, chairs, beds, wardrobes, dining sets. Estetpo
of contract is entered into between factories and stores of decoration or sale of furniture for home or
office.
Consignment contract for toys. One of the most common goods on consignment is
toys, especially during certain times like Children's Day and Kings' Day.
Consignment contract for technology and appliances. In this case, it can also be
put on consignment cell phones, computers, tablets, stoves, washing machines, microwaves,
refrigerators. In general, the authorized distributors of large technology companies are
who uses this type of contracts.
Elements of the consignment contract
It is important that when you create your contract, the document contains certain elements.
basics. This way it will be valid and will save you from setbacks.
Parties participating in the contract
By this, we refer to some data of the consignor and the consignee. You will be able to and must note down.
full name, nationality, as well as whether it is a natural or legal person, number of
official identification and address. This part is of course the most important as it will serve to
identify the subjects.
The contract is entered into by one party [FULL NAME OF THE CONSIGNOR], as a person (natural or
moral) hereinafter referred to as consignor legally represented by [NAME
LEGAL REPRESENTATIVE]. Domiciled in [STATE, CITY, ADDRESS] with number of
identification [TYPE AND ID NUMBER] and nationality [NATIONALITY].
On the other hand, [FULL NAME CONSIGNEE] is found as a person (physical or moral).
who hereinafter will be referred to as consignee legally represented by [NAME]
LEGAL REPRESENTATIVE]. Located in [STATE, CITY, ADDRESS] with number of
[TYPE AND ID NUMBER]
Goods to be consigned
Here it is noted what type of goods will be given on consignment and their specifications or
characteristics.
SECOND.- The product to be consigned is [PRODUCT DESCRIPTION].. The
specifications are stated in this contract and are as follows:
[SPECIFICATIONS].
Legal capacity
As has been mentioned in other posts, in order for a contract to be concluded and of course to be
Valid, the will and legal capacity must be something that needs to appear in writing.
DECLARATIONS
The consignor and the consignee declare:
Mutually recognize each other as having the legal capacity to enter into this contract.
Both declare that the celebration of this contract is celebrated without any defects of will.
Duration of the contract
In this part, the day on which the contract will take effect and the day on which it will cease must be noted.
do it.
THIRD.- The contract will have a duration of [DURATION IN MONTHS], which will begin on
day [START DAY] of month [MONTH] of year [YEAR] and will end on day [END DAY] of month [MONTH]
of the year [YEAR].
Price of the product per unit
Here the price that each product will have will be specified. That is, the cost at which the seller
must sell the merchandise to the buyers, to guarantee a profit margin for the
involved.
FOURTH. – Each product will have a cost of $[AMOUNT AND CURRENCY] per unit.
Commissions
It is important to establish the amount that the consignee will receive for the work of selling it.
product.
SEVENTH. - The consignor must deliver to the consignee the amount of [AMOUNT] for the concept
of commission.
Signatures and Annexes:
In the section of signatures, the one from the consignee and the one from the consignor must appear; otherwise, the
the contract will lack value.
As attachments, you can add:
Product warranties
Manuals
Photographer
Copies of the identifications
Consignment contract format
One way to make your job easier when you need to create a contract is to download it completely.
Congrats our macho consignment contract. You can add or remove clauses or
simply fill it in with your information.