Consignment Agreements

Summary

This practice note addresses important terms and considerations pertinent to drafting and negotiating a consignment agreement. Consignment agreements allow manufacturers and suppliers (consignors) to transfer goods to another party (a consignee) who attempts to sell those goods. The consignor retains ownership and title of the goods, and the consignee only pays the consignor if and when the goods are sold or used by the consignee. Usually, any consigned goods not sold after a set period of time are returned to the consignor.