What is a Consignment Agreement?

By | April 15, 2008

A consignment agreement is for the use of a Seller who provides goods to another party (i.e. Company), for sale by that Company. The Seller gets paid only after the Company has sold the goods to an end user/consumer/purchaser. The Consignor places goods in the hands of another but retains ownership until the goods are sold. This may typically be done for sale in a store or consignment shop. In the context of sale, it is usually understood that the consignee pays the consignor only after the sale, from its proceeds.

Definition of Consignment Agreement.

You can find an example of a Consignment Agreements here.