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When it comes to selling a used vehicle, the Car Consignment Agreement plays a pivotal role in ensuring a transparent, secure, and mutually beneficial transaction between the vehicle owner (Consignor) and the dealer or individual (Consignee) responsible for selling the vehicle. This comprehensive document outlines the terms and conditions under which the consignment sale will occur, including but not limited to the exclusive right to sell, the vehicle's minimum selling price, commission rates, and the division of responsibilities regarding the vehicle's condition, insurance, and any necessary repairs. The agreement meticulously records vehicle details such as year, make, model, VIN, and current condition, alongside stipulating any existing liens against the vehicle and how insurance coverage is to be handled during the consignment period. Importantly, it also addresses scenarios such as the vehicle selling to a third party, the procedure for vehicle return if not sold, and indemnification provisions to protect the consignee. Moreover, the agreement includes specifics on advertising costs, detailing fees, and additional services that may incur extra charges, ensuring that both parties have a clear understanding of the financial aspects related to the consignment sale. This level of detail safeguards the interests of both the consignor and consignee, setting the stage for a successful transaction.

Form Preview Example

USED VEHICLE CONSIGNMENT AGREEMENT

Exclusive listing with the exclusive right to sell

I (We) _____________________________________ the Consignor(s) agree(s) to consign and deliver possession to ________________

___________________________________________at address of _______________________, with telephone number _____________,

Dealer No. __________________, the Consignee, the vehicle described as follows, for the sole purpose of selling the vehicle with a

minimum selling price of $______________. Consignor(s) shall have final approval of any proposed sale of the vehicle.

This agreement is to begin on ______________________ and will terminate on ________________. The terms of this agreement are that

the Consignor shall return the vehicle to the consignor(s), or enter into a new agreement at the termination of this consignment agreement.

Year

 

Make

 

 

Model

 

VIN#

 

License Plate #

 

Odometer

 

Style

 

Exterior Color

 

Actual Miles, TMU, Exempt?

 

Air Conditioning Power Locks

Keyless Entry No. Remotes: __________

Power Windows Power Seats Power Sunroof

Leather – Color: ____________________

Cloth – Color: _____________________

Engine: ____________________________

Transmission: _______________________

AWD

FWD

RWD 4WD Navigation DVD system

AM/FM Cassette AM/FM CD Player AM/FM CD Changer Manuals Maintenance Records Floor Mats

______________________

______________________

Consignor(s) warrant(s) that he/she (they) has/have possession of the title or that the title is held by the below listed lien holder and that there are no interests, liens, or claims against the vehicle which are not below:

Name of Lien holder:

 

Address:

Phone No.:

 

Account No.:

The Consignor(s) agree(s) that, pending sale, the vehicle’s title shall remain in Consignor(s) name and that theft, fire, comprehensive and liability insurance be and/or must remain in effect during the consignment period.

Agent Name:

 

Phone No.:

Insurance Co.:

 

Address:

Policy No.:

 

Liability Limits:

Effective:

 

Expiration:

The Consignor(s) represents and warrants that to the best of the Consignor(s) knowledge, information and belief, that the vehicle has not been involved in an accident. If the vehicle has been in an accident, the Consignor(s) has provided Consignee with the relevant information.

Yes

Yes

Yes

Yes

Yes

No

Has this vehicle ever been in an accident?

No

Has this vehicle ever been in a flood?

No

Has this vehicle ever had hail damage?

No

Has this vehicle ever had a branded title?

No

Is the vehicle currently unable to pass safety or emissions inspections?

If “Yes” checked above, please provide details:

Indicate whether the vehicle is:

Yes Yes

No

AS-IS - NO WARRANTY

No

WARRANTY

Condition of Vehicle:

Excellent

Average

Poor

The vehicle requires the following work:

The delivery of this vehicle is on consignment and is not a sale of the vehicle to the Consignee. The Consignee agrees to receive the vehicle in trust and not to permit its use for any other purposes than what is contained in this agreement without express written consent of the Consignor(s).

Consignor(s) hereby agree(s) to the following commission rates as set forth by the Consignee:

Sale Price of Vehicle

Commission/Costs

Sale Price of Vehicle

Commission/Costs

$0-$_______

$_______

$_______-$_______

$_______

$_______ - $_______

$_______

$_______ and up

___%

Carfax & NADA reports are included in commission cost. Advertising on Autotrader, KBB, CarGurus, TrueCar, Vast, Edmunds &

CarFax Online are included in commission cost. Cars.Com, Craigslist, Ebay and any other specialty ad site are extra on cars under

$_______. Complete detailing, safety inspection, repair work, financing and offered warranty plans are available at an extra cost and are

not included in the commission fee.

Additional Fees If Applicable:

 

$_______

Safety Inspection/Emission

$___ + Sales Tax (cars/lt trucks)

Finance Facilitation Fee:

Labor Rate

$_____/hour, plus parts

Professional Detail

$_______ & Up

Warranty Plans:

$_____ & up

 

 

Upon completion of sale and receipt of a good, negotiable title, the net amount due to the Consignor(s) from the Consignee shall be the gross sale amount less any costs for repairs or detailing previously agreed to by Consignor(s), and commission rate as set forth in this agreement, and further agrees that the Consignee will pay off any existing encumbrances against said vehicle and deduct the same from the net amount due.

If repairs are required before or during the period of consignment, Consignee shall notify the Consignor(s) and shall secure Consignor(s) approval before any work shall commence. All repair costs will be deducted from the Consignor(s) net. If the vehicle is not sold during the specified agreement term, Consignor(s) agree(s) to pay repairs before vehicle is returned to Consignor(s).

In the event the vehicle is sold by someone other than the Consignee during the period of agreement, the Consignor(s) agree(s) to pay the Consignee _____ percent ( ___%) of the price received. In the event a sale is made to a buyer who discussed the vehicle with the

Consignee, then the Consignor(s) agree(s) to pay the Consignee _____ percent ( ___%) of the vehicle’s selling price.

Should the Consignor(s) wish to remove the vehicle from Consignee’s premises, Consignee shall require a minimum of _________ ( __ )

hours’ notice. The vehicle can then be removed between the hours of ______ and ______ pm on weekdays or subject to appointment. All

advertising, detail, repair, inspection, and any other costs incurred while the vehicle was on the Consignor’s premises will be due at the time of removal.

If the vehicle remains unsold and a new agreement is not considered, or if the vehicle has been sold but not removed from Consignee’s premises or if the Consignor(s) or buyer(s) are delinquent in paying fees, Consignee may have the vehicle impounded at the Consignor(s)

or buyer(s) expense without prior notice to the Consignor(s) or buyer(s). Additionally, Consignee may, at any time, demand that the vehicle be removed from Consignee’s premises upon _________ ( __ ) hour notice to Consignor(s).

Consignor(s) hereby promise(s) to defend, indemnify and hold harmless Consignee, its employees agents and assigns from any and all demands, judgments, claims, including reasonable legal and all other expenses actually incurred and paid, incident to any claim whether baseless or well founded by any third party in connection with any automobile taken by Consignee on consignment, including without limitation any claim for taxes by any State of the United States, territory or political subdivision thereof. The indemnification language contained herein shall survive the termination of this agreement,

It is further agreed that the Consignee, its agents or assigns are not responsible for any damage to the vehicle due to fire, accident, theft, vandalism or any cause whatsoever.

Consignor:

 

 

Email:

 

Address:

 

 

Home Phone

 

 

 

 

Work Phone:

 

Signature:

 

 

Date:

 

Consignee on behalf of ________________________:

 

 

 

NOTICE TO CONSIGNOR: Failure of the Consignee to comply with the terms of this agreement may be a violation of stature which could result in criminal or administrative sanctions, or both. If you feel the Consignee has not complied with the terms of this agreement, please contact the Department of Motor Vehicles, Division of Investigations and Occupational Licensing Bureau of Investigations, via the local Department of Motor Vehicles office. The Consignee is the person(s) or dealer who is selling the vehicle(s) on behalf of the Consignor. The Consignor is the person(s) who has given the vehicle to the Consignee to be sold.

File Characteristics

# Fact
1 This agreement grants exclusive rights to sell the specified used vehicle to the Consignee.
2 The Consignor retains final approval over any proposed sale of the vehicle.
3 The agreement specifies a minimum selling price for the vehicle.
4 The consignment agreement has a defined start and end date.
5 Vital vehicle details such as Year, Make, Model, VIN#, and Odometer reading must be disclosed in the agreement.
6 The Consignor is responsible for maintaining insurance on the vehicle during the consignment period.
7 The Consignor must disclose any past accidents, floods, hail damage, or branded titles the vehicle has.
8 Commission rates and additional fees applicable to the sale of the vehicle are clearly outlined in the agreement.
9 The Consignee agrees to pay off any existing encumbrances against the vehicle from the sale proceeds.
10 The Consignor promises to defend and indemnify the Consignee against any claims related to the vehicle consigned.

Steps to Writing Car Consignment

Filling out a Car Consignment Form is a straightforward process, yet it requires attention to detail to ensure all the information provided is accurate and complete. This document is crucial for documenting the agreement between the vehicle owner (consignor) and the entity selling the vehicle on their behalf (consignee). The following steps are designed to assist in completing this form correctly. Once filled out, this form sets the stage for the consignment process, ensuring both parties are clear about their responsibilities, the vehicle’s condition, and the financial aspects of the deal.

  1. Start by entering the full name(s) of the consignor(s) at the top of the form where indicated.
  2. Provide the name of the consignee, who will be responsible for selling the vehicle, along with their full address and telephone number.
  3. Fill in the Dealer Number of the consignee if applicable.
  4. Describe the vehicle in detail, including its year, make, model, VIN (Vehicle Identification Number), license plate number, and odometer reading.
  5. Specify the vehicle’s style, exterior color, and mark whether it is equipped with air conditioning, power locks, keyless entry, power windows, power seats, power sunroof, and if it has leather or cloth upholstery. If so, indicate the color.
  6. Detail the vehicle's engine and transmission type, drive system (AWD, FWD, RWD, 4WD), and if it comes with navigation, DVD system, or any specific type of audio system.
  7. Check the appropriate boxes to indicate if the vehicle comes with manuals, maintenance records, and floor mats.
  8. Enter the name and contact information of any lien holder, if the title is not in possession of the consignor.
  9. Indicate whether the vehicle will remain insured during the consignment period and provide the insurance agent’s name, company, address, policy number, liability limits, and the policy’s effective and expiration dates.
  10. Answer “Yes” or “No” to questions regarding the vehicle’s history of accidents, floods, hail damage, branded title, and its ability to pass safety or emissions inspections. Provide details if any answer is “Yes”.
  11. Select the vehicle’s warranty status, either “AS-IS - NO WARRANTY” or “WARRANTY,” and its overall condition (Excellent, Average, Poor).
  12. List any work the vehicle requires before sale.
  13. Agree upon the commission rates and costs for selling the vehicle, including any additional fees for services such as safety inspection/emission, professional detailing, warranty plans, etc.
  14. Provide the consignor’s email, address, home phone, and work phone number.
  15. Both consignor(s) and consignee must sign and date the form to validate the agreement.

After completing and signing the Car Consignment Form, the next step involves the consignee taking possession of the vehicle and beginning the process to sell it according to the terms outlined in the agreement. Remember, maintaining open communication between consignor and consignee throughout this process is crucial for a successful consignment sale.

Important Details about Car Consignment

What is a Used Vehicle Consignment Agreement?

A Used Vehicle Consignment Agreement is a legal contract between a vehicle owner (consignor) and a dealership or agent (consignee) authorizing the consignee to sell the vehicle on behalf of the consignor. It outlines the responsibilities, rights, and obligations of both parties, including the minimum selling price, commission rates, and conditions for the sale of the vehicle.

Who are the Consignor and Consignee in this agreement?

The Consignor is the vehicle's current owner who wishes to sell the vehicle through consignment. The Consignee, on the other hand, is the dealership or individual selected by the consignor to sell the vehicle on their behalf under the terms outlined within the agreement.

What are the responsibilities of the Consignor?

Responsibilities of the Consignor include providing the vehicle in sale-ready condition, ensuring the vehicle's title is clear of any liens or claims (unless otherwise specified), maintaining insurance on the vehicle during the consignment period, and granting final approval on any proposed sale. Additionally, the consignor must disclose any known defects or past accidents the vehicle may have been involved in.

How is the minimum selling price determined?

The minimum selling price is agreed upon by both the Consignor and Consignee before entering into the consignment agreement. It is influenced by factors such as the vehicle's condition, market value, and any outstanding liens that may affect the sale price.

What if the vehicle sells for more than the minimum agreed price?

If the vehicle sells for more than the minimum agreed price, the excess amount, after deducing the consignee's commission and any other agreed-upon costs, will be paid to the Consignor. The exact distribution of such excess depends on the commission rates and costs as outlined in the consignment agreement.

Is the Consignor allowed to sell the vehicle independently while it is under consignment?

No, once the vehicle is under consignment based on the exclusive listing agreement, the Consignor agrees not to sell the vehicle independently. If the vehicle is sold by someone other than the Consignee or to a buyer introduced by the Consignee during the agreement term, the consignor may still owe a commission to the consignee.

What happens if the vehicle does not sell by the end of the agreement?

If the vehicle does not sell by the end of the agreement, the Consignor has the option to enter into a new agreement, take back possession of the vehicle, or, under certain conditions, pay for the repairs agreed upon during the consignment before taking the vehicle back.

Who is responsible for insurance during the consignment period?

The Consignor is responsible for keeping theft, fire, comprehensive, and liability insurance in effect during the consignment period, ensuring the vehicle remains protected until the title transfers to a new owner.

Can the consignment agreement be terminated early?

Yes, the consignment agreement can be terminated early by mutual agreement of both the Consignor and Consignee. The terms for early termination, including notice period and financial obligations, should be outlined in the consignment agreement.

Common mistakes

Filling out a Car Consignment form is a crucial step in the process of consigning a vehicle, but it is common for people to make mistakes that can complicate or delay the sale. Understanding and avoiding these errors can ensure a smoother consignment experience.

One significant mistake is not thoroughly checking the vehicle information detailed in the form, such as the year, make, model, VIN, and odometer reading. Providing inaccurate or incomplete information can mislead potential buyers and may even void the consignment agreement if discrepancies are discovered.

Another common oversight is failing to disclose the condition of the vehicle accurately. Checking the correct boxes that apply to the vehicle’s features and condition, including any history of accidents, flood damage, or hail damage, is vital. If a vehicle has been involved in any incidents or has any known issues, these must be disclosed in the specified sections of the form. Omitting these details can lead to disputes or legal issues if discovered after the sale.

People often neglect to verify the lienholder information they provide on the consignment form. If the vehicle is still under finance, it's imperative to list the correct name of the lienholder, their address, and the account number. Any claim against the vehicle that's not accurately disclosed can complicate the sale process, potentially leading to legal complications.

Many also forget to review the terms related to the consignment period, commission rates, and additional fees. Understanding these terms is critical, as they outline the financial aspects of the consignment, including what costs are included in the commission and what additional fees might apply. Overlooking these details can result in unexpected expenses that could diminish the profitability of the sale.

Last but not least, a significant mistake is not acknowledging the agreement's end and what occurs if the vehicle doesn't sell. The consignment agreement will specify what actions need to be taken, such as entering into a new agreement or paying for any repairs or outstanding fees before the vehicle is returned. Not being prepared for these outcomes can cause unnecessary stress and financial strain at the end of the consignment period.

By avoiding these common errors and paying close attention to the details when filling out a Car Consignment form, consignors can help ensure a smoother, faster selling process and avoid potential legal and financial pitfalls.

Documents used along the form

When dealing with the sale of a car on consignment, a Used Vehicle Consignment Agreement is foundational, ensuring clear terms between the consignor and consignee. However, to successfully navigate and conclude the consignment process, it's often necessary to complement this agreement with other forms and documents. Each serves a distinct purpose, rectifying any potential issues upfront and smoothening the transaction pathway.

  • Title Document: This document is essential as proof of ownership. It confirms that the consignor legally owns the vehicle and has the right to sell it. All parties involved need assurance that the title is clear and free of liens for a smooth transfer of ownership.
  • Odometer Disclosure Statement: Federally required for the sale of most vehicles, this form documents the vehicle's mileage at the time of sale. It serves as protection against odometer fraud, providing the buyer with accurate information about the car's mileage.
  • Vehicle History Report: A report from a service like Carfax or AutoCheck can offer peace of mind to both the consignee and potential buyers. It includes vital information such as past accidents, service history, and any instances of flood or fire damage.
  • Sales Agreement: When a buyer is found, a sales agreement outlines the terms of the sale, including the sale price, vehicle condition, and any warranties or guarantees. This legally-binding document protects both the buyer and the seller during the transaction.
  • As-Is No Warranty Document: This form is critical if the vehicle is being sold "as-is" without any warranty. It makes it clear to the buyer that once the sale is complete, they assume all responsibility for repairs and maintenance.

Together, these documents complement the Used Vehicle Consignment Agreement by providing a comprehensive framework that addresses legal ownership, the vehicle's history and condition, and the specifics of the sale process. Employing these forms not only facilitates a smoother transaction but also helps mitigate risks, ensuring all parties are well-informed and protected throughout the consignment sale.

Similar forms

The Vehicle Sales Agreement is notably similar to the Car Consignment Form, as both document a transaction involving a vehicle. Where the Car Consignment Form specifies the terms under which a vehicle is consigned to a dealer for sale, the Vehicle Sales Agreement outlines the terms of an actual sale between a buyer and a seller. Both documents detail the vehicle's description (make, model, VIN, etc.), condition, and any warranties or lack thereof. However, the Vehicle Sales Agreement culminates in the transfer of ownership upon sale, unlike the consignment arrangement that allows for the vehicle's return if unsold.

A Power of Attorney for Vehicle Transactions bears resemblance to the Car Consignment Form in that it involves the delegation of authority over a vehicle, but it serves a broader purpose. This legally binding document grants a designated agent the power to make decisions and take actions regarding the vehicle on the owner's behalf, which might include selling, registering, or handling taxes. Unlike the Car Consignment Form, which is specific to the sale of a vehicle on consignment, a Power of Attorney could apply to a variety of transactions and does not inherently involve a consignment or sales agreement.

The Vehicle Lease Agreement shares some common ground with the Car Consignment Form as it pertains to the use of a vehicle under specific conditions. While the consignment form arranges for a vehicle to be sold by a third party, a lease agreement outlines the terms under which an individual can use a vehicle for a set period in exchange for payment. Both documents specify details about the vehicle and any conditions related to its use or sale. However, the lease agreement focuses on the temporary use of the vehicle rather than a sale through a third party.

An Automotive Repair Contract is similar to parts of the Car Consignment Form that deal with detailing, safety inspection, and repair work. Both documents can outline specific services to be performed on a vehicle and stipulate fees and who bears the responsibility for these costs. While the Car Consignment Form includes this information within the broader context of consigning a vehicle for sale, an Automotive Repair Contract is exclusively focused on the agreement between a vehicle owner and a service provider for maintenance or repair services.

A Vehicle Storage Agreement shares similarities with the Car Consignment Form in terms of the custody and care of a vehicle. This type of agreement outlines the terms under which a vehicle will be stored by a third party, including duration, fees, and the conditions of the storage space. Like the consignment form, it may include clauses about the vehicle's insurance requirements. However, the primary focus of a Vehicle Storage Agreement is on the safekeeping of a vehicle, not its sale.

The Lien Release Document is related to the Car Consignment Form in the context of vehicle ownership and financial interests. When a vehicle is sold, especially if consigned through a dealer, a Lien Release Document might be necessary to certify that the vehicle is free from any financial encumbrances, such as a loan or a lien. Both documents are integral to the process of selling a vehicle, ensuring that the transfer of ownership can occur without legal complications from unresolved financial claims.

Finally, the Bill of Sale is closely associated with the Car Consignment Form because it acts as a receipt for the transaction, delineating the transfer of ownership of the vehicle from the seller to the buyer. The Car Consignment Form, while arranging for a third party to facilitate the sale, does not itself transfer ownership. However, upon the completion of a sale as arranged through a consignment, a Bill of Sale would be used to finalize and formalize the transaction, making it a critical companion document to the consignment agreement.

Dos and Don'ts

When filling out a Car Consignment Form, it's essential to pay close attention to detail and understand both your rights and responsibilities. Below are key dos and don'ts to help guide you through the process.

  • Do read the entire agreement thoroughly before signing. This ensures you understand all terms and conditions.
  • Do verify all the vehicle details such as make, model, year, and VIN to ensure they are accurately listed in the agreement.
  • Do confirm the consignment and commission fees agreed upon with the consignee are clearly stated to avoid any surprises.
  • Do keep a copy of the agreement for your records once it’s signed. Having a record can be crucial in case of discrepancies.
  • Do check the insurance requirements and ensure that your vehicle remains covered throughout the consignment period.
  • Don’t leave any sections of the form blank. If a section doesn’t apply, write “N/A” to indicate this.
  • Don’t forget to discuss and understand what happens if your vehicle doesn’t sell within the agreed period.
  • Don’t sign the agreement if you are unclear about any terms. Ask for clarification or seek legal advice if necessary.
  • Don’t hesitate to negotiate terms that you are not comfortable with. Remember, this is a mutual agreement that should benefit both parties.

By following these guidelines, you can ensure a smoother car consignment process and help protect your interests.

Misconceptions

When considering the consignment of a vehicle, it's essential to understand the process thoroughly. However, several misconceptions can lead to confusion or unrealistic expectations. Here are six common misunderstandings about car consignment forms and agreements:

  • Consignment Sales Guarantee Higher Selling Prices: Many believe that consigning a vehicle will always yield a higher selling price compared to other selling methods. While consignment can potentially provide access to a broader market and professional sales tactics, there are no guarantees of a higher selling price.
  • Consignor has no say in the sale: Another misconception is that once a vehicle is consigned, the consignor loses all control over the selling process. In reality, the consignment agreement should specify that the consignor retains final approval of any proposed sale, ensuring they have a say in the transaction.
  • All Responsibilities Shift to the Consignee: It's often thought that consigning a vehicle means the consignee assumes all responsibilities, including those related to the condition and legal standing of the vehicle. However, the consignor must ensure the vehicle is in sellable condition and that there are no unresolved legal issues, such as undisclosed liens.
  • No Costs Incurred by the Consignor: Many assume that consigning a vehicle is a cost-free service for the consignor. While the consignee may cover certain costs upfront, the agreement might include fees for services like advertising, detailing, and repairs, which can be deducted from the sale proceeds.
  • Immediate Sale of the Vehicle: A common expectation is that consignment leads to a quick sale. The truth is that the time it takes to sell a consigned vehicle can vary widely based on factors such as market demand, price, and condition of the vehicle.
  • Insurance and Liability are Always Covered by the Consignee: While it might seem logical to assume the consignee covers all insurance and liability once they take possession of the vehicle, the agreement should clearly outline that theft, fire, comprehensive, and liability insurance must remain in effect and in the consignor's name during the consignment period.

Understanding these misconceptions can help both consignors and consignees enter into a car consignment agreement with clear expectations and responsibilities, ultimately leading to a smoother and more satisfactory transaction for both parties.

Key takeaways

When considering consigning your vehicle, understanding the terms and responsibilities laid out in the Car Consignment Form is crucial for a smooth process. Here are key takeaways to keep in mind:

  • Exclusive Agreement: The form establishes an exclusive arrangement, granting the consignee (dealer) the sole right to sell the vehicle on behalf of the consignor (vehicle owner).
  • Vehicle Details: All relevant details about the vehicle, including year, make, model, VIN, and condition features, must be thoroughly documented to ensure transparency and avoid future disputes.
  • Financial Terms: The minimum selling price, commission rates, and any additional fees such as for advertising, detailing, and safety inspections are clearly defined, protecting both parties’ financial interests.
  • Insurance and Liability: The consignor must maintain insurance coverage over the vehicle while it's on consignment, mitigating risks related to theft, fire, or accidents.
  • Disclosures: Full disclosure about the vehicle's history, including accidents, flood damage, or branded titles, is required to keep all sales transparent and maintain trust.
  • Sale and Compensation Process: Upon sale, the agreement details how the payment will be processed, including paying off liens and how the consignor’s compensation is calculated after deducting the consignee's commission and any agreed-upon costs.
  • Term and Termination: Both the start and end dates of the consignment agreement are clearly outlined, including conditions under which the consignor or consignee can terminate the agreement and any responsibilities for unsold vehicles.
  • Legal Protection: The agreement includes clauses that protect the consignee against legal claims related to the vehicle during the consignment period, and stipulates the consignor's responsibility to defend such claims.

Thoroughly reviewing and understanding each of these elements can significantly enhance the consignment experience, ensuring both parties are fully aware of their rights and obligations. It's also a key step in making sure the vehicle consignment process is as smooth and beneficial as possible for everyone involved.

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