Consignment Contract
CONSIGNMENT AGREEMENT: THE MIDNIGHT CHAPTER LLC
THIS CONSIGNMENT AGREEMENT ("Agreement") is entered into on [Date], by and between The Midnight Chapter LLC ("Consignee"), located at 100 E Erie St, Albion MI 49224, and [Consignor Name] ("Consignor"), located at [Consignor Address].
1. AGREEMENT TO SELL
The Consignor grants the Consignee the right to display and sell mutually agreed-upon items. These items shall include [e.g., books, stationery, or specific local merchandise].
The Consignee agrees to provide dedicated space to display the merchandise. The Consignee agrees to ensure customer sightlines and access are not impeded. The Consignor shall provide a complete and accurate inventory list prior to or upon delivery, including a description, quantity, and the retail price for each item.
2. PROCEEDS AND TERMS OF SALES
Revenue Split: The Consignee shall be entitled to retain 40% of the retail sale price of each item sold. The Consignor shall receive 60% of the retail sale price.
Payment: The Consignee shall submit payment to the Consignor on or before the 15th of the month for items sold during the previous calendar month.
Sales Tax: The Consignee is responsible for collecting and remitting all applicable sales tax to the Michigan Department of Treasury.
Pricing: The Consignee agrees to maintain the retail price listed on the inventory sheet and will not discount items without written consent from the Consignor.
3. PERIODIC RE-EVALUATION
Both parties agree to a formal re-evaluation of this consignment arrangement on a Monthly basis. During this review, the Consignee and Consignor will:
Assess sales data and turnover rates for the period.
Decide which items should be replenished, rotated, or removed.
Discuss potential adjustments to display placement or marketing.
Determine whether to continue, modify, or terminate the agreement based on performance.
After each month, the Consignee reserves the right to:
Extend the agreement for another one-month term;
End the agreement effective immediately; or
Transition to a Quarterly evaluation schedule upon mutual written agreement.
4. INVENTORY MANAGEMENT & LOSS
Condition: The Consignee shall only accept merchandise in new or "like-new" condition.
Insurance: The Consignee shall maintain insurance for the premises covering fire or catastrophe. However, the Consignor and Consignee shall share responsibility for items lost, stolen, or damaged during the consignment period at the same rate as the revenue split (60% Consignor / 40% Consignee).
Ownership: The Consignor retains ownership of all merchandise until the point of sale.
5. TERMINATION
This Agreement shall remain in effect until terminated by either party. Either party may terminate this Agreement at any time by providing 30 days advance written notice. Upon termination, the Consignor is responsible for the retrieval of all unsold merchandise. If merchandise is not picked up within 30 days of the termination date, it shall be considered abandoned and may be disposed of at the Consignee's discretion.
6. GOVERNING LAW
This Agreement shall be construed and governed in accordance with the laws of the State of Michigan. Any disputes that cannot be resolved through good-faith negotiation shall be handled via mediation or arbitration in Calhoun County, Michigan.
AGREED AND EXECUTED on this ______ day of ____________.
CONSIGNEE:
The Midnight Chapter LLC
Representative Name: _________________________________________________
Representative Signature: ______________________________________________
CONSIGNOR:
[Consignor Business Name/Individual]
Representative Name: _________________________________________________
Representative Signature: ______________________________________________
