Free Auction Consignment Agreement

Name: Free Auction Consignment Agreement Template
Brand: Template.net
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Auction Consignment Agreement

I. Introduction

A. Parties Involved

This Agreement is entered into by and between [Your Company Name] (the "Auction House"), a company specializing in the sale of fine art and collectibles, with its principal office located at [Your Company Address], and [Second Party Company Name] (the "Seller"), a company specializing in [antique furniture], with its principal office located at [Second Party Company Address].

B. Purpose of the Agreement

The purpose of this Agreement is to outline the terms and conditions under which the Seller agrees to consign property (the "Items") to the Auction House for the purpose of sale at public auction. This Agreement ensures clarity on both parties’ roles and responsibilities and defines the expectations for the successful sale of the consigned Items.

C. Effective Date

This Agreement will take effect as of [Date], when both parties have executed the document, and shall remain in force until the consigned Items are sold or returned in accordance with the terms outlined herein.

II. Description of Consigned Items

A. Items to be Consigned

The Seller agrees to consign the following Items to the Auction House for sale at public auction:

Antique Victorian Etagere (circa 1880): A finely crafted wooden etagere made from mahogany with intricate carvings, 72 inches in height, in excellent condition with minimal wear.
Diamond Engagement Ring: A 3-carat round brilliant-cut diamond set in platinum, accompanied by a GIA certification, in pristine condition with no visible inclusions.
Oil Painting by Claude Monet: "Water Lilies" (circa 1906), a rare impressionist painting, 36 x 48 inches, in excellent condition with original frame and no restoration work.

These Items will be sold at the Auction House's upcoming event scheduled for [Auction Date].

B. Condition of Items

The Seller acknowledges that the Auction House has been provided with a condition report or appraisal (if applicable), and the Seller affirms the items' authenticity and condition as described.

III. Auction Terms

A. Auction Date and Location

The Auction House will sell the consigned Items at its next scheduled auction, which will take place on [Auction Date] at [Auction Location]. The auction method will be [Live Auction].

B. Shipping and Delivery

The Seller is responsible for delivering the Items to the Auction House at [Your Company Address] at least [00] days prior to the auction date. All shipping costs and associated risks are borne by the Seller unless otherwise agreed.

IV. Commission and Fees

A. Auction House Commission

The Auction House shall be entitled to a commission of [00]% of the final sale price of each Item sold at auction.

B. Additional Fees

The Seller agrees to pay the following fees in addition to the Auction House’s commission:

Cataloging Fee: $[00]
Photography Fee: $[00]
Marketing and Advertising Fees: $[00]

Any other fees as necessary, disclosed in writing by the Auction House.

C. Payment to Auction House

Payment for services rendered by the Auction House is due [00] days following the auction sale. Any unpaid fees will be deducted from the proceeds of the sale.

V. Reserve Price

A. Setting a Reserve Price

The Seller may set a minimum price (a "Reserve Price") for any consigned Item. If the reserve is not met during the auction, the Item may be withdrawn from sale.

The Reserve Price for each Item is as follows:

Item 1: $[00]

Item 2: $[00]

Item 3: $[00]

B. Changes to the Reserve Price

The Seller may amend the reserve price no later than [00] days before the auction. Any changes must be submitted in writing to the Auction House.

VI. Payment to Seller

A. Proceeds from Sale

After the sale of each Item, the Auction House will deduct the applicable commission and fees, and the remaining proceeds will be paid to the Seller.

B. Payment Timeline

Payments to the Seller will be made within [00] business days of the auction date. The Auction House will provide an itemized statement detailing the sale price, commission, fees, and net proceeds.

C. Method of Payment

Payments will be made by [check or bank transfer] to the Seller's designated account.

VII. Insurance and Liability

A. Insurance Coverage

The Auction House will insure the consigned Items against loss, theft, or damage while in its custody at the Auction House’s premises, and during the auction, up to a value of $[00].

B. Seller’s Liability

The Seller is responsible for ensuring that the Items are in saleable condition at the time of consignment. The Auction House will not be liable for any damage that occurs prior to or during the sale, except in cases of negligence or misconduct by the Auction House.

VIII. Duration and Termination

A. Term of Agreement

This Agreement shall remain in effect until the consigned Items are sold or returned to the Seller, as specified in this Agreement.

B. Termination

Either party may terminate this Agreement with written notice to the other party, subject to the following conditions:

If the Items are not sold, they may be returned to the Seller after [00] days.
In the event of termination by the Seller, any unpaid fees owed to the Auction House must be settled.

IX. Confidentiality and Non-Disclosure

A. Confidentiality of Information

Both parties agree to maintain the confidentiality of reserve prices, bids, and any sensitive information disclosed during the auction process.

B. Non-Disclosure of Sale Details

The Seller agrees not to disclose the final sale price of any Items to third parties unless required by law.

X. Warranties and Representations

A. Seller’s Warranties

The Seller warrants that they are the lawful owner of the consigned Items, that the Items are free of any liens, encumbrances, or claims, and that the Items are authentic.

B. Auction House’s Obligations

The Auction House warrants that it will make reasonable efforts to sell the Items at auction and will conduct the sale in accordance with applicable laws and regulations.

XI. Governing Law and Dispute Resolution

A. Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the State of [State].

B. Dispute Resolution

Any disputes arising under this Agreement will be resolved through [arbitration] in [City, State], and both parties agree to submit to the jurisdiction of the courts in [State].

XII. Miscellaneous Provisions

A. Entire Agreement

This Agreement constitutes the entire understanding between the parties and supersedes any prior agreements or understandings related to the subject matter.

B. Amendments

Any amendments to this Agreement must be made in writing and signed by both parties.

C. Force Majeure

Neither party shall be liable for failure to perform under this Agreement due to circumstances beyond their control, including but not limited to natural disasters, acts of government, or other events that make performance impossible.

XIII. Signatures

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

[Your Name]

[Your Company Name]

[Date]

[Representative's Name]

[Second Party Company Name]