Kaagazaat

Consignment Agreement

At a glance

Price: Free, always.
Stamp duty: Stamp duty depends on what the paper does and on the Schedule to the Indian Stamp Act, 1899 as applied in Punjab and in Chandigarh.
Registration: Not compulsorily registrable unless it creates or transfers a right in immovable property (section 17, Registration Act, 1908); this paper is not meant to.
Witnesses: Not required by law, but two adult witnesses who are not parties, each writing name, address and ID reference beside the signature, make a later denial harder.

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Also called

consignment sale agreement
goods on consignment
sale or return agreement
consignment stock agreement
display and sell arrangement
art or craft consignment
consignor and consignee agreement
maal kamishan par

When you need it

A maker, wholesaler, artist or supplier in Punjab or Chandigarh (the consignor) leaves goods with a shop, dealer or gallery (the consignee) to display and sell, and is paid only for what sells. The goods stay the consignor's property until sold; the consignee earns a commission or margin; unsold goods go back.

This agreement fixes the goods and their list prices, who bears loss or damage while they are with the consignee, how sales are reported and paid for, how often stock is counted, when unsold goods return, and what happens if the consignee's creditors or a dispute threaten the goods. The point that matters most is ownership: because the goods remain the consignor's, they should be kept separate and marked, and the consignee must hold the sale money for the consignor and pay it over. Consignment is different from selling to a dealer who buys the goods, and from an agent who only finds customers. Not for a dealer who buys goods outright and resells (use the Distributor or Dealership Agreement). Not for an agent who finds buyers without holding stock (use the Commission Agent Agreement). Not for consignment of vehicles or of goods sent abroad.

Whether you can fill this in here

You can fill this in here

You can fill this one in on this site, and read the whole draft on screen before you decide anything about it. It is a carefully drafted template; it is not advice about your own facts.

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See stamp duty, registration and witnesses

What follows is written for Punjab and Chandigarh. It states the position there rather than describing how it varies, so the amounts below are the ones that apply — worth confirming at the sub-registrar’s office, because rates change. If the property is anywhere else in India, none of this is yours.

Stamp duty

Stamp duty depends on what the paper does and on the Schedule to the Indian Stamp Act, 1899 as applied in Punjab and in Chandigarh. An agreement of this kind is usually charged as an agreement not otherwise provided for, at a modest fixed figure, but the figure is not stated here: confirm it on the official e-stamping portal or with the Sub-Registrar before buying the stamp. If a clause makes the paper in substance something else (a transfer of property, a lease, a power of attorney, a guarantee), it is charged as that. An under-stamped paper cannot be used as evidence until the deficit and penalty are paid.

Registration

Not compulsorily registrable unless it creates or transfers a right in immovable property (section 17, Registration Act, 1908); this paper is not meant to. Registration is optional if the parties want it.

Notarisation

Not required by law, and not a substitute for stamping. A notary only records that the signatories appeared and signed, which makes it harder to deny a signature later. Carry original photo ID.

Witnesses

Not required by law, but two adult witnesses who are not parties, each writing name, address and ID reference beside the signature, make a later denial harder.

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Sample preview — placeholder answers, not your data

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CONSIGNMENT AGREEMENT

This Agreement is made at Chandigarh on 2 April 2026.

BETWEEN

Kaur Handloom Works, of Village Lalru, S.A.S. Nagar (Mohali) 140501, GSTIN 03AKJPI4432R1Z9, acting through Gurleen Kaur, Proprietor (the "Consignor");

AND

Heritage Crafts Emporium, of SCO 33, Sector 17-D, Chandigarh 160017, GSTIN 03AKJPI4432R1Z9, acting through Arvind Mehta, Partner (the "Consignee").

1. THE GOODS AND OWNERSHIP

1.1 On 1 April 2026 the Consignor delivered to the Consignee, for display and sale on consignment, the following goods (the "Goods"), of a total list value of ₹3,06,500 (Rupees Three Lakh Six Thousand Five Hundred only): Phulkari dupattas: 60 pieces, list price Rs 2,400 each. Hand-embroidered shawls: 25 pieces, list price Rs 6,500 each.

1.2 The Goods remain the property of the Consignor until sold to a customer and the price is received. The Consignee has no ownership in them, only the right to display and sell them as the Consignor's agent on the terms of this Agreement, and shall keep them apart from its own stock, marked as the Consignor's, in a safe and suitable place. The Consignee shall not sell them to itself, pledge, lend, or charge them, or let a creditor treat them as its own; if a creditor or officer tries to take them, the Consignee shall at once tell the creditor the Goods are the Consignor's and tell the Consignor.

1.3 The Consignee bears the risk of loss, theft, fire and damage from delivery until sale or return, and shall insure the goods or hold them at its own risk.

2. SALE, PRICE AND COMMISSION

2.1 The Consignee shall display the Goods fairly and try honestly to sell them during the 6 months from 1 April 2026 (the "Term"). It shall not sell any item below the list price in clause 1.1 without the Consignor's written consent, and may sell on credit only at its own risk.

2.2 The Consignee keeps 25 per cent of the sale price before GST on each item sold, as its commission, and shall pay the Consignor the rest of the sale price. Sale money received for the Goods is held in trust for the Consignor and shall not be mixed with the Consignee's own money beyond what is needed to bank it.

2.3 Within 10 days after the end of each month, the Consignee shall send the Consignor a written report of the items sold that month with the date and price of each, the stock remaining, and any loss or damage, and shall pay the amount due to the Consignor by bank transfer with it. GST is dealt with as the law requires, and each Party shall issue the invoices and keep the records that the law requires of it for the supply of the Goods.

2.4 The Consignor may inspect the Goods and count the stock at the Consignee's premises on reasonable notice, and the Consignee shall let it examine the sales records for the Goods. A joint stock count shall be made at the end of every three months and at the end of the Term.

Questions about this document

Does the Consignment Agreement need stamp paper or stamp duty in Punjab and Chandigarh?

Stamp duty depends on what the paper does and on the Schedule to the Indian Stamp Act, 1899 as applied in Punjab and in Chandigarh.

See the full position on stamp duty, registration and witnesses

Does the Consignment Agreement need registration in Punjab and Chandigarh?

Not compulsorily registrable unless it creates or transfers a right in immovable property (section 17, Registration Act, 1908); this paper is not meant to.

See the full position on stamp duty, registration and witnesses

What does the Consignment Agreement cost on Kaagazaat?

Free, always.

Does the Consignment Agreement need witnesses?

Not required by law, but two adult witnesses who are not parties, each writing name, address and ID reference beside the signature, make a later denial harder.

See the full position on stamp duty, registration and witnesses

Often needed with this document

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