1. Introduction
WHEREAS, Watch Essence is involved in the sale and marketing of luxury watches and jewelry; and
WHEREAS, the Consignor owns certain items (the “Property”) listed on Watch Essence’s online platform or collected by an employee of Watch Essence as part of its consignment service and wishes to sell these items; and
WHEREAS, the Consignor desires Watch Essence to sell the Property on consignment, and Watch Essence agrees to facilitate the sale of the Property on behalf of the Consignor;
NOW, THEREFORE, for mutual consideration, the receipt and sufficiency of which are acknowledged, and subject to Watch Essence’s current Returns Policy and Terms of Service (see Watch Essence website at www.watchessence.com), the Parties agree as follows:
2. Property Delivery; Risk; Insurance
The Consignor provides the Property to Watch Essence on consignment, and Watch Essence accepts it on the same basis. The risk of loss or damage passes to Watch Essence when the Property is in its physical possession. The Consignor retains the risk while the Property is in transit unless using Watch Essence’s approved shipping method, in which case Watch Essence will insure the Property up to the sale price. Watch Essence will insure the Property against customary risks and will provide evidence of such insurance as requested. If the Property is damaged or lost while with Watch Essence, a Property Sale is deemed to have occurred, and Watch Essence will reimburse the Consignor based on the net selling price. This reimbursement is the Consignor’s sole remedy against Watch Essence.
3. Property Acceptance; Condition
Watch Essence only accepts clean items in excellent to very good condition. Upon receipt, Watch Essence will assess the Property’s authenticity and quality. Items not meeting Watch Essence’s standards or not listed in the accepted Property Directory will be returned to the Consignor at their expense.
4. Counterfeit Items
The Consignor will not consign counterfeit items. If Watch Essence suspects an item is counterfeit, it will notify the Consignor and provide a reasonable opportunity to retrieve the item. If the Consignor does not retrieve the item within 120 days, it will be considered abandoned. Watch Essence may share the Consignor’s information with rights owners tracing counterfeit items.
5. Consignment Duration
The “Consignment Period” starts when Watch Essence receives the Property and lasts for 180 days, extendable by mutual agreement. After this period, the Consignor can request the return of the Property, bearing the return shipping costs.
6. Sales Efforts; Pricing
Watch Essence will display and make reasonable efforts to sell the Property. The initial selling price will be mutually agreed upon in writing. Watch Essence reserves the right to offer promotions and discounts. The Property may be advertised and sold alongside items from other consignors.
7. Property Title
The Consignor retains title to the Property until a Property Sale occurs. A “Property Sale” is when an item is sold by Watch Essence and not returned within the specified period in the Return Policy.
8. Payment and Commissions
Watch Essence will receive a commission on the sale of any item, based on the net received funds:
- $100 – $5,500: 35%
- $5,501 – $7,500: 30%
- $7,501 – $10,000: 27%
- $10,001 – $15,000: 25%
- $15,001 – $20,000: 20%
- $20,001 – $25,000: 17.5%
- $25,001 – $35,000: 17.5%
- $35,001 – $50,000: 17.5%
- $50,001 – $75,000: 15%
- $75,001 and up: 15%
Commissions reset at the Termination Date. The “Net Selling Price” means the revenue received after deductions. Payments are issued on the 15th of every month for sales from the previous month. Watch Essence may withhold commissions in the event of disputes.
9. Property Return
During the Consignment Period, the Consignor may request the return of Property with reasonable notice, bearing all related costs. If the Consignor requests the return before the Consignment Period ends, a fee of $700 per item plus additional costs will apply.
10. Termination
Either Party may terminate this Agreement at any time with written notice. Return costs listed above apply.
11. Assignment
Neither Party may assign this Agreement without the other’s written consent, except in the case of a corporate transaction involving Watch Essence.
12. Term Changes
Terms may be changed by notice on Watch Essence’s website. Watch Essence will attempt to notify the Consignor of changes but cannot guarantee timely receipt of such notices.
13. Property Warranties
Watch Essence offers no warranties on the Property except as required by law.
14. Representations, Warranties, and Indemnification
The Consignor warrants good title to the Property and that it does not infringe on third-party rights. The Consignor agrees to indemnify Watch Essence against claims arising from the display or sale of the Property. Watch Essence disclaims all warranties and limits its liability to the net amounts received from sales.
15. Governing Law
This Agreement is governed by California law. The Parties consent to the jurisdiction of Newport Beach, CA courts.
16. Entire Agreement
This Agreement represents the complete agreement between the Parties and supersedes all prior agreements. It may only be modified by a written agreement signed by both Parties.
17. No Waiver
Failure to insist on strict performance of any term does not constitute a waiver of future performance.
18. Severability
Invalidity of any provision does not affect the validity of the remaining provisions.
19. Headings
Headings are for convenience only and do not affect interpretation.
20. Termination Date
This Agreement will terminate automatically on the last day of the month one year from the date of the first Property Sale unless terminated sooner.