Consignment Clause (Pro-Consignor)

Summary

These clauses on consignment for the resale of goods can be used in a commercial transaction where a manufacturer or seller ("consignor") provides its goods to another party ("consignee") on a consignment basis. These clauses have been drafted with terms that favour the consignor and includes provisions on initial stocking order, vendor managed inventory, delivery, inspection, storage, title, insurance and purchase-return of the consigned goods. These clauses include practical guidance and drafting notes. A consignee takes possession of the seller's goods but does not receive title, and usually is not obligated to pay for the goods until such time they are sold. The consignor will retain title to the goods until sold by the consignee, and the goods can usually be returned by the consignee without further obligation at the end of the consignment period. A consignment may be entered into for a variety of reasons, including the consignee's unwillingness to make an investment in an ...