Watch consignment agreement

Why consignment needs a written agreement

On consignment you're holding and selling someone else's watch. Everything that can go wrong in that arrangement, from a lower sale price than the owner hoped for to damage in your care, a slow payout, or an argument over who pays for a service, goes far better when it was agreed in writing before the watch changed hands.

The terms that matter most

• Price. Either a minimum you won't go below without approval, plus your commission, or a fixed amount the owner receives with you keeping anything above it.
• Term. How long you'll try to sell it, and what happens if it doesn't sell.
• Expenses. Who pays for servicing, polishing, photography, and marketplace fees, and when you need approval to spend.
• Payout. How soon after a sale the owner is paid: after the buyer's payment clears and any return window closes, so you never pay out on a sale that unwinds.
• Custody and insurance. That you'll keep the watch secure and insured, and what you owe if it's lost or damaged. See how dealers insure inventory.
• The owner's statements. That the watch is theirs to consign, isn't stolen, and that they've told you what they know about its history.

Commission or a fixed amount?

With a commission, you and the owner share the upside: the higher the sale, the more you both make. With a fixed amount, the owner gets certainty and you take both the risk and the upside of the final price. The calculator's consignment mode shows the most you can offer while still clearing your margin, and buying outright vs. consignment weighs the two models.

Before anyone signs

Consignment touches property and contract law, and some states have rules specific to consignment. The details matter. This template is a careful, plain-English starting point, not a substitute for advice: have an attorney review it for your state and adjust the terms to how you actually operate before you use it with a client.

Common questions