I run a small collectibles shop specializing in vintage die-cast cars and sports cards. A few regulars have asked if they can leave items with me to sell on their behalf, and I want to do it legitimately. I need a solid consignment agreement template or advice on what clauses are non-negotiable. I'm not trying to become a lawyer here, just want to avoid getting burned when someone claims I sold their mint condition item for less than we agreed.
Consignment
My collectibles business needs consignment agreements
First thing: define 'mint condition' in the agreement. People have wildly different definitions. Take photos of every item at intake and have both parties sign off on them.
Get a lawyer. Not trying to be snarky, but a generic template might not cover your state's consignment laws. Some states require you to hold consigned goods in trust or carry a specific bond.
What GrumpyCatHerder said. Also, make sure you have a clear commission percentage and a timeframe. If the item doesn't sell in X days, what happens? Does it go back to the owner? Do you discount it? Put it in writing.
Thanks, all. I'll definitely look into state-specific rules. I hadn't thought about the trust aspect. Any tips on how to handle disputes over condition at pickup?
Photos at drop-off and pickup. Time-stamped. No exceptions. Also, do a quick video walkaround of high-value items. It's saved me twice.
You could also require a minimum value for consignment. I wouldn't bother with $10 items—too much paperwork for too little return.
SneakySasquatch beat me to the timeframe bit. Also, spell out who pays for insurance and shipping if the item needs to be sent somewhere. And liability if it's stolen or damaged while in your possession. That's a big one.
One more: right of first refusal. If the owner wants to sell it elsewhere while it's with with you, or if you want to buy it yourself, put that in the contract.
And a clause about abandoned items. If they don't pick it up after X days, you can charge storage or dispose of it. Otherwise you'll have stuff sitting in your back room for years.
Appreciate all this. I'm making a checklist. The abandoned items thing is a real concern—I already have a guy who 'forgot' a box of cards for six months.
Ha! Send him a certified letter. That usually gets their attention.
Before you draft anything, check if your state's attorney general has a consumer protection page on consignment. Sometimes they have plain-lnaguage guides that cover the basics better than a template.
Also, make sure you're not accidentally creating a bailment. That's a legal relationship that has its own rules. A lawyer can help you avoid that mess.
This thread is making me realize I need to redo my own consignment form. Mine is a one-pager I wrote in 2015. Yikes.