What commission percentage is standard for consignment?

Commission rates typically range from 30% to 50% for the selling shop, depending on the industry. Art galleries often take 40-50%; clothing boutiques typically take 30-40%. Higher commissions may be appropriate when the shop provides significant marketing, display space, or sales support.

Do I need to file a UCC-1 to protect my consigned goods?

In many situations, yes. If the consignee has creditors or files for bankruptcy, a UCC-1 financing statement perfects your security interest in the consigned goods under Article 9 of the Uniform Commercial Code. Without it, a bankruptcy trustee could treat your goods as the consignee's property. Filing a UCC-1 is strongly recommended for consignments of significant value.

Who is responsible if consigned items are stolen or damaged?

This is determined by your agreement. Most consignment contracts hold the consignee responsible for loss or damage occurring while goods are in their possession since they are acting as bailee. The damage liability clause in this template makes the consignee liable up to the listed retail value of the items.

What happens if the consignee sells items below the minimum price?

Selling below the agreed minimum price is a breach of contract. The consignor is typically entitled to payment at the minimum price regardless of what the consignee actually received. Include a clear minimum price clause and monitor sales reports to catch unauthorized discounts.

Can I place new items on consignment during the agreement period?

Yes, most parties use a master consignment agreement covering the ongoing relationship, with separate inventory addendums for each new batch of items. This approach is cleaner than amending the main agreement each time new items are added.

Free Consignment Agreement Template — Fill Out & Download Instantly

Free — No Sign-Up RequiredPDF & WordUpdated April 4, 2026

⚠️ Legal Disclaimer: This template is attorney-reviewed and built to US legal standards. It does not substitute for professional legal advice. For complex situations, we recommend consulting a licensed attorney.

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Governing State*

State where the consignment arrangement will take place

Consignor Full Name*

The owner of the goods being placed for sale

Consignor Address*

Consignee / Shop Name*

The retailer or shop selling goods on behalf of the consignor

Consignee / Shop Address*

Description of Consigned Items*

Describe all items including quantity, condition, and estimated retail value

Total Estimated Value of Consigned Items*

Aggregate retail value of all items being consigned

Consignment Period*

How long the consignee has to sell the items

Consignee Commission (%)*

Percentage of sale price retained by the consignee as commission

Minimum Sale Price Per Item*

Lowest price at which items may be sold without consignor approval

Payment Schedule to Consignor*

Storage and Display Responsibility*

Unsold Items Return Process*

Include Title Retention Clause

Insurance Responsibility*

Damage and Theft Liability*

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CONSIGNMENT AGREEMENT

This Consignment Agreement ("Agreement") is entered into as of the date last signed below, by and between:

[Consignor Full Name] ("Consignor")

Address: [Consignor Address]

and

[Consignee / Shop Name] ("Consignee")

Address: [Consignee / Shop Address]

1. CONSIGNED ITEMS

Consignor delivers to Consignee the following items for sale on consignment:

[Description of Consigned Items]

Total Estimated Retail Value: $[Total Estimated Value of Consigned Items]

2. CONSIGNMENT PERIOD

This Agreement shall be effective for a period of 90 days from the date of execution. Upon expiration, unsold items shall be handled as set forth in Section 6 below.

3. TITLE AND OWNERSHIP

Consignor retains full title and ownership of all consigned items until the point of sale to a third-party customer. Transfer of title occurs only upon actual sale. Consignee receives no ownership interest in consigned items and may not pledge, encumber, or transfer title to such items.

4. PRICING AND COMMISSION

Consignee Commission: [Consignee Commission (%)]% of actual sale price

Consignor Share: [Consignee Commission (%)]% deducted; balance remitted to Consignor

Minimum Sale Price: $[Minimum Sale Price Per Item] per item (or per lot where applicable)

Consignee may not sell any item below the minimum sale price without prior written consent from Consignor. Consignee shall not offer discounts exceeding 15% without Consignor approval.

5. PAYMENT TO CONSIGNOR

Consignee shall remit payment of Consignor's share of proceeds on a monthly basis, accompanied by an itemized sales report. Payments shall be made by check, ACH transfer, or other mutually agreed method.

6. STORAGE AND DISPLAY

[Storage and Display Responsibility]

7. RETURN OF UNSOLD ITEMS

[Unsold Items Return Process]

8. INSURANCE

[Insurance Responsibility]

9. DAMAGE AND THEFT

[Damage and Theft Liability]

10. REPRESENTATIONS OF CONSIGNOR

Consignor represents and warrants that: (a) Consignor has full authority to consign the items described herein; (b) the items are free and clear of any liens or encumbrances; and (c) the items do not infringe any third-party intellectual property rights.

11. GOVERNING LAW

This Agreement shall be governed by the laws of the State of [Governing State]. The parties acknowledge that consignment transactions may be subject to UCC Article 9 of the [Governing State] Uniform Commercial Code, and Consignor may file a UCC-1 financing statement to protect their interest in consigned goods.

12. TERMINATION

Either party may terminate this Agreement upon 10 days' written notice. Upon termination, all unsold items shall be returned to Consignor and all outstanding payment obligations shall be settled within 15 days.

13. ENTIRE AGREEMENT

This Agreement constitutes the entire understanding between the parties and supersedes all prior negotiations or representations.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date written below.

_________________________________

[Consignor Full Name]

Consignor

Date: _______________

_________________________________

[Consignee / Shop Name]

Consignee / Authorized Representative

Date: _______________

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Governing State*

State where the consignment arrangement will take place

Consignor Full Name*

The owner of the goods being placed for sale

Consignor Address*

Consignee / Shop Name*

The retailer or shop selling goods on behalf of the consignor

Consignee / Shop Address*

Description of Consigned Items*

Describe all items including quantity, condition, and estimated retail value

Total Estimated Value of Consigned Items*

Aggregate retail value of all items being consigned

Consignment Period*

How long the consignee has to sell the items

Consignee Commission (%)*

Percentage of sale price retained by the consignee as commission

Minimum Sale Price Per Item*

Lowest price at which items may be sold without consignor approval

Payment Schedule to Consignor*

Storage and Display Responsibility*

Unsold Items Return Process*

Include Title Retention Clause

Insurance Responsibility*

Damage and Theft Liability*

What Is a Consignment Agreement Template?

A consignment agreement is a contract between a consignor (the owner of goods) and a consignee (a shop, gallery, or retailer) that governs the sale of goods on a commission basis. The consignee displays and sells the items but does not purchase them outright — the consignor retains title until the goods are sold. This template covers item descriptions, valuation, commission rates, payment schedules, storage responsibilities, unsold return procedures, and liability, making it suitable for clothing boutiques, art galleries, antique shops, and general retail consignment arrangements..

When Do You Need It?

You need a consignment agreement when: an artist or designer wants a gallery or boutique to sell their work, a seller wants to place goods in a consignment shop without selling outright, a retailer agrees to stock third-party goods and pay the owner only upon sale, or an estate is liquidating items through a consignment store. A written agreement protects both the owner's title and the seller's commission rights..

What's Included in This Template

Consignor and consignee identification
Detailed description and valuation of consigned items
Consignment period with start and end dates
Commission percentage and minimum sale price
Payment schedule and method
Storage and display responsibilities
Procedure for returning unsold items
Title retention clause (owner retains title until sale)
Insurance and risk of loss provisions
Damage and theft liability allocation
Signature blocks for both parties

How to Fill It Out

Select Your State — Choose the state where the consignment arrangement will operate. This governs the contract and any UCC Article 9 considerations for consignment transactions.

Enter Party Details — Fill in the consignor's name and address (the person or business supplying goods) and the consignee's shop name and address (the retailer selling the goods).

Describe the Consigned Items — Provide a clear description of all items being consigned including quantities, condition, and any identifying details. Attach a separate inventory list for large batches.

Set Commission and Pricing — Enter the commission percentage the consignee earns on each sale and the minimum price below which items cannot be sold without consignor approval.

Choose Payment Schedule — Select when the consignee will remit proceeds to the consignor — weekly, monthly, or upon each individual sale. Monthly is the most common arrangement.

Define Return and Liability Terms — Specify what happens to unsold items at the end of the consignment period and who bears responsibility for damage, theft, or loss while goods are in the consignee's possession.

Legal Requirements & Notes

This consignment agreement template addresses key legal considerations for US consignment arrangements:

UCC Article 9 (Secured Transactions): Under the Uniform Commercial Code as adopted in all 50 states, a consignor may need to file a UCC-1 financing statement to perfect their security interest in consigned goods and protect against the consignee's creditors in the event of insolvency or bankruptcy. This is critical when the consigned value is substantial.

Bankruptcy Risk: If a consignee files for bankruptcy, consigned goods may be treated as the consignee's property by the bankruptcy trustee unless the consignor has a perfected UCC security interest. Consignors with high-value items should consider filing a UCC-1.

Title Retention: Clear title retention language helps establish consignor ownership, but UCC filing provides the strongest legal protection.

State Consignment Laws: Some states have specific laws governing art consignment (e.g., California, New York) that provide enhanced protections for artists. These laws may supersede contract terms.

Frequently Asked Questions

In a wholesale arrangement, the retailer purchases goods outright and assumes all risk. In consignment, the retailer only pays the supplier when items actually sell. The supplier retains ownership until sale. Consignment is riskier for the supplier but gets products into stores without the retailer needing upfront capital.