Sale of Goods on Consignment


Overview
- The Sale of Goods on Consignment Agreement allows a Consignor to provide goods to a Consignee, who then attempts to sell the goods.  The Consignee then pays the Consignor for goods sold and returns any unsold goods.
- A sale on consignment arrangement is common with goods where the retailer is unwilling or unable to make the financial investment necessary to keep an inventory of the goods.  The goods sold by a Consignee are usually smaller items, usually sold at retail on a "cash and carry" basis.  
- Unlike a sale of goods to a distributor, the Consignee does not pay for the goods it receives and never takes title to (i.e. ownership of) the goods.  
- The Consignor must satisfy itself that the Consignee is a good retailer and can be trusted to properly care for the goods and remit the correct net amount to the Consignor on a timely basis.  

When You Need It
- To draft an agreement to provide for the sale of goods on consignment.  
- In this arrangement, the seller or manufacturer of the goods, the "Consignor," delivers the goods to another party, the "Consignee."  
- The Consignee owes no money to the Consignor until the goods are sold to the Consignee's customers.


Getting Started

You will need:
- Name and address of Consignee.
- Name and address of Consignor.
- Description of the goods to be sold on consignment, the purchase price and commission payable on any goods sold. 
- Date the agreement begins and the conditions for termination.

When to Review and Revise 
- To correct the information contained in the agreement.
- To draft another agreement to sell goods on consignment.