In the Agreement, the party who is granting the right to rent /sell its merchandise will be referred to as “Consignor”, and the other party who is receiving the right to rent/sell the merchandise will be referred to as "PDB".
The parties understand and agree to the following terms:
I. RIGHTS TO MERCHANDISE. Consignor grants PDB an exclusive right to rent below described item(s) for at least one entire prom season until August
31st). The option to extend this agreement will be determined at the end of that period. Consignor grants PDB right to sell consigned merchandise if outlined below after the first year rental period.
Consignor agrees to deliver to PDB, on consignment, described item(s) clean and ready to wear. PDB agrees to devote its best efforts to the rental of the merchandise. Consigner can rent his/her own merchandise, free of charge, and will pay the cleaning fee and follow PDB’s reservation policies. All rental and sale prices shall be determined by mutual consent of the parties.
II. PROCEEDS. PDB will pay Consignor a portion of the rental & sale proceeds which shall be calculated as follows: 20 percent of the proceeds from the rental of consigned merchandise. 70 percent of the proceeds from the sale of consigned merchandise. The amount determined in the previous sentences shall be paid to Consignor by the 15th of each month following the rental and/or sale of described
item(s). With each payment, PDB will submit to Consignor a e-mailed statment that sets forth the calculation of the amount of the net proceeds payment.
III. RECORDS. PDB shall keep accurate records regarding the rental and sale activity of consigned items. Consignor shall have the right to inspect such records from time to time after providing reasonable notice of such intent to PDB.
IV. TITLE TO MERCHANDISE. Consigned merchandise shall remain the property of Consignor, except that PDB shall be responsible for all shortages, loss, or damage, while the merchandise is under the control of PDB. If consigned merchandise is irreparably damaged (upon discretion of PDB), Consignor will receive
70 percent of the agreed value merchandise from PDB as payment in full. PDB will provide best possible
care of merchandise, however, normal wear is to be expected.
V. AGREEMENT CONCLUSION. Consignor understands that if merchandise has not been rented/sold after one season, PDB has authorization to donate merchandise to charity or contact consignor to make arrangements for Consignor to pick up merchandise. Consignor agrees that after being notified he/she will have one week to pick up merchandise. After that time period the
merchandise will be donated to a charitable organization unless other arrangements are made in writing with PDB. It is the Consignor’s responsibility to contact PDB with any change in address, e‐mail or phone.
V. DEFAULTS. If PDB fails to abide by the obligations of this Agreement, including the obligation to remit the consignment payment to Consignor when due, Consignor shall have the option to cancel this Agreement by providing 30 days' written notice to PDB. PDB shall have the option of preventing the termination of this Agreement by taking corrective action that cures the default, if such corrective action is taken prior to the end of the time period stated in the previous sentence, and if there are no other defaults during such time period.
VII. ARBITRATION. All disputes under this Agreement that cannot be resolved by the parties shall be submitted to arbitration under the rules and regulations of the American Arbitration Association. Either party may invoke this paragraph after providing 30 days' written notice to the other party. All costs of arbitration shall be divided equally between the parties. Any award may be enforced by a court of law.
VIII. WARRANTIES. Neither party makes any warranties with respect to the use, sale or other transfer of the consigned merchandise by the other party or by any third party. In no event will Consignor be liable for direct, indirect, special, incidental, or consequential damages, that are in any way related to the consigned merchandise.
IX. TRANSFER OF RIGHTS. This Agreement shall be binding on any successors of the parties. Neither party shall have the right to assign its interests in this Agreement unless the prior written consent of the other party is obtained.