It can be a bit of a stretch to just leave certain materials, products, or equipment for that matter in your garage, warehouse, or storage. Rather than leaving all these to rot or decay, a very good way to make a bit of profit is to have this sold or rented out. Now if you have any excess machinery or equipment which you are unable to use, then you may opt to sell these by trade-ins, inventory purchase, auction, or consignment sale. Now for this article, if you decide on consigning your equipment, the equipment is sent to the buyer before fully being paid for. The seller retains ownership of the equipment until its fully paid. All these terms and other important details must be put into writing in an equipment consignment agreement. To learn more about this, let us discuss this further below. If you need any help preparing a consignment agreement, check out our free equipment consignment agreement samples that are available for download on this page.
10+ Equipment Consignment Agreement Samples
1. Equipment Consignment Agreement
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3. Product Equipment Consignment Agreement
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5. Sample Equipment Consignment Agreement
6. Standard Equipment Consignment Agreement
7. Equipment Manufacturer Consignment Agreement
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10. Professional Equipment Consignment Agreement
11. Dealer Equipment Consignment Agreement
What is an Equipment Consignment Agreement?
Generally, a consignment allows another individual or company to sell something you own on your behalf. But of course, you need to put all these in writing as there are certain terms, commission or fees, and other relevant details that need to be discussed. In the case of equipment, and equipment consignment agreement is a valid contract that places the equipment/machinery the consignor owns with the consignee or seller, for them to sell. The consignee in this case often takes a fee or commission and then the remainder of the selling price goes to the owner. A lot of companies that deal with machinery sales of all kinds and often offer additional services which are not only limited to purely selling. As they may also handle the shipping, and decommissioning of the equipment. All these and more must be duly stated in the agreement.
How To Create an Equipment Consignment Agreement?
Selling equipment under consignment may sometimes result in smaller profit, but it has its benefits since the consignee may handle the marketing, the customers, answer the capacity and control questions and negotiate expenses and final purchase price. So, there is a lesser hassle, since they are the ones in charge of the various arrangements including the shipping of the equipment. To begin creating an equipment consignment agreement, remember to include the following provisions below.
1. Contact Information
The names or business names of the consignee and consignor must be written in the agreement, together with their addresses.
2. Equipment or Machinery for Sale
Give a detailed description of the equipment or machinery to be sold. Indicate if these are used or brand-new, the model date, brand name, and other relevant details.
The agreement should state the selling price of the equipment or you can opt to give an estimate that is reasonable enough. The agreement could also give the consignee the right to discount the equipment’s price with or without the approval of the consignor.
The consignee is in charge of collecting the income from the buyer and should pay the consignor the balance due less the commission or fees from the consignee. The payment schedule should also be included in the document.
Whoever is responsible for the expenses should be written in the agreement.
The consignor remains the owner of the equipment until fully paid, and should there be any damages or loss while the equipment is in the consignee’s care, they will be held responsible.
Explain how the termination process should go about in case by a certain date the equipment remains unsold, in case of bankruptcy, or other unforeseen events.
What the Types of Consignment Agreement?
These are exclusive and nonexclusive. The difference between the two is the exclusive rights on selling the item or product. One would allow just one consignee and the latter would mean other consignees may attempt to sell the item as well.
What are the Types of Consignment Merchandise?
Aside from equipment or machinery, clothing and merchandise are the commonly consigned items. Automobiles are also popular, instead of selling your car to a dealer at a price below its market value, you may want to sell it on consignment.
What Is the Downside of Consignment Sale?
Less revenue than selling these to direct customers because of the commissions.
A well-crafted and complete equipment consignment agreement will help you establish a good working relationship with your business partner. So, check out our sample templates and download all these for free!
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