ContractsCounsel Logo
Home Types of Contracts Consignment Agreement

Jump to Section

ContractsCounsel has assisted 23 clients with consignment agreements and maintains a network of 22 business lawyers available daily.

What is a Consignment Agreement?

A consignment agreement is a legally binding document between a consignee and a consignor for the sale, storage, transfer, resale and use of a commodity. The consignee accepts goods from sellers to sell to potential buyers. The consignee will not receive commissions till the goods are sold. If the goods do not sell, they can be returned to the consignor.

You can read more on consignment here .

What is Consignment in Contract Law?

In contract law, consignment agreements contain language indicating that the retailer agrees to display the provided consigned items for a specific time period also known as the consignment period . The terms set out in the consignment agreement decide how the commodities will be marketed during the consignment period.

For each sale, the consignee will get commission and pay the agreed upon price to the consignor who provided the items for sale. The contract also determines how the unsold items will be returned or if the consignment period will be extended for those items.

You can read more on consignment agreements in contract law here .

Meet some lawyers on our platform

Zachary J.

383 projects on CC
CC verified
View Profile

Linda W.

12 projects on CC
CC verified
View Profile

Bryan B.

270 projects on CC
CC verified
View Profile

Brian S.

15 projects on CC
CC verified
View Profile

Key Components of a Consignment Agreement

There are key components of a consignment agreement:

  • Parties Involved: The agreement should identify the parties involved and contain the date of the agreement. The party providing the commodities is known as at the consigner and the party selling the property on behalf of the consignor is called the consignee.
  • Recitals: Recitals describe the reason why the parties are entering the agreement. This can be used to describe the general retail purpose of the goods provided.
  • Consigned Goods: This section describes the goods or property being sold on behalf of the consignor by the consignee. This should be a detailed description, possibly including serial numbers, model, style, date of purchase, initial retail price, current retail price, etc.
  • Delivery of Goods: This section states that property is being provided on a consignment basis only and explains the risk that the consignor bears in delivering the product, such as loss or damage.
  • Consignment Period: This determines the initial length of the consignment and if the term will automatically extend if the good isn’t sold.
  • Efforts to Sell: This section describes the consignee’s obligations to market and sell the good and sets clear expectations that the consignor can have of the consignee.
  • Title to Products: This section emphasizes that in a consignment, the ownership of property still remains with the consignor. This is different from other relationships that occur between manufactures, retailers and stores, where the ownership shifts to the store when the good is bought to be displayed and sold in stores.
  • Payment and Commission: This section determines the percentage of sale to be kept by the consignee as commission.
  • Risk of Loss/Damage: This section reiterates the responsibility of the consignee when the property is in their possession. It also lays out the penalties in case the property is lost or damaged while under the consignee’s possession.
  • Return of Products: This section allows the consignor to request a return of the property on provision of reasonable notice. The parties can decide how long the time period would be.
  • Additional Terms: This optional section provides any additional terms that would apply to the consignment purchase and resale process.
  • Termination: The termination clause explains that either party can end the agreement at any time for any reason.
  • No Assignment: This section states that no party can transfer their responsibilities set under the contract without consent from the other parties involved.
  • Notices: This section provides addresses to which all official or legal correspondence would be delivered.
  • Default : This optional section can be used to provide security to the consignor. This indicates that if the consignor requests the consignee to file papers swearing that the products belong to the consignor the consignee must do so.
  • No Product Warranties: This section states that there are no warranties on the products except any required by law.
  • Consignor’s Representations, Warranties, and Indemnification: This is an optional section that indicates that the consignor owns the property and no other entity has interest in the property.
  • Governing Law and Equitable Relief: This governing law clause states the state and county laws that would be used to interpret the agreement.
  • Entire Agreement: The entire agreement clause simply states that the parties are signing “this agreement”. However, this doesn’t prevent a party from arguing that other enforceable promises exist.
  • No Implied Waiver: This explains that if either party breaks any obligation under the agreement it doesn’t mean that it also waives future rights to enforce any obligations.
  • Severability: The severability clause protects the terms of the agreement as a whole even if one part of other is invalidated.
  • Counterparts/Electronic Signatures: This section outlines that even if parties sign the agreement or parts of it in different locations or through electronic signatures, they will still be considered part of the same agreement.
  • Headings: This section simply clarifies that headings in the beginning of each section are meant for organization not to be considered operational parts of the agreement.

ContractsCounsel Consignment Agreement Image

Image via Pexels by Liza Summer

How Consignment Agreements Work

Consignment agreements allow a consignee to sell goods on behalf of a consignor without having to purchase the goods. The consignee earns commission on the consigned goods sold.

A consignment arrangement allows outlets to sell goods without having to invest in purchasing them. Often luxury goods are in demand in the resale market and owners of vintage luxury goods can choose to consign their luxury items.

Consignment stores provide marketing and sale of these goods without bearing much risk as they do not need to purchase the good for advertising and selling it. Consignment agreements clearly lay out responsibilities and obligations of the consignor and consignee involved in the sale of the property.

Consignment agreements can be of two types:

  1. Exclusive : In an exclusive consignment agreement, only the consignee has the right to sell the consignor’s item.
  2. Non-exclusive : In a non-exclusive consignment agreement, multiple consignees can attempt to sell the same item.

Here is more on how consignment agreements work .

Get Help with a Consignment Agreement

Do you have any questions about a consignment agreement and want to speak to an expert? Post a project today on ContractsCounsel and receive bids from business lawyers who specialize in consignment agreements.


ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.


Need help with a Consignment Agreement?

Create a free project posting
Clients Rate Lawyers 4.9 Stars
based on 11,328 reviews

Meet some of our Consignment Agreement Lawyers

Donya G. on ContractsCounsel
View Donya
4.9 (60)
Member Since:
July 11, 2020

Donya G.

Contract, M&A, E-Commerce Attorney; Contract Dispute and Dispute Resolution Specialists
Free Consultation
United States
24 Yrs Experience
Licensed in CT, NY
Pace University School of Law

I am a licensed and active NY and CT Contracts Attorney, with over 20 years of diverse legal and business experience. I specialize in reviewing, drafting and negotiating commercial agreements. My practice focuses on working with small business clients as well as clients from international brokerage firms on acquisitions, especially in the Ecommerce space; drafting, negotiating, reviewing and advising on business agreements; ; breach of contract issues, contract disputes and arbitration. I am licensed to practice in New York and Connecticut, and am a FINRA and NCDS Arbitrator. My experience includes serving as General Counsel to small businesses. This entails reviewing, updating and drafting contracts such as employments agreements, asset purchase agreements, master services agreements, operating agreements and a variety of business and commercial contracts. Additionally, I assist clients with business strategies, contract disputes and arbitration. My diverse experience allows me to give my clients a well-rounded approach to the issues they face. I have been at top AML law firms; a Vice President at an Investment Bank, a Civil Court Arbitrator presiding over cases in contract law, commercial law, a Hearing Officer, presiding over cases and rendering written decisions, and a Judicial Clerk to a Civil Court Judge. It would be a privilege to assist you and your business with my services.

Ryenne S. on ContractsCounsel
View Ryenne
4.9 (405)
Member Since:
October 11, 2022

Ryenne S.

Principal Attorney
Free Consultation
Chicago, IL
14 Yrs Experience
Licensed in IL
DePaul University College of Law

My name is Ryenne Shaw and I help business owners build businesses that operate as assets instead of liabilities, increase in value over time and build wealth. My areas of expertise include corporate formation and business structure, contract law, employment/labor law, business risk and compliance and intellectual property. I also serve as outside general counsel to several businesses across various industries nationally. I spent most of my early legal career assisting C.E.O.s, General Counsel, and in-house legal counsel of both large and smaller corporations in minimizing liability, protecting business assets and maximizing profits. While working with many of these entities, I realized that smaller entities are often underserved. I saw that smaller business owners weren’t receiving the same level of legal support larger corporations relied upon to grow and sustain. I knew this was a major contributor to the ceiling that most small businesses hit before they’ve even scratched the surface of their potential. And I knew at that moment that all of this lack of knowledge and support was creating a huge wealth gap. After over ten years of legal experience, I started my law firm to provide the legal support small to mid-sized business owners and entrepreneurs need to grow and protect their brands, businesses, and assets. I have a passion for helping small to mid-sized businesses and startups grow into wealth-building assets by leveraging the same legal strategies large corporations have used for years to create real wealth. I enjoy connecting with my clients, learning about their visions and identifying ways to protect and maximize the reach, value and impact of their businesses. I am a strong legal writer with extensive litigation experience, including both federal and state (and administratively), which brings another element to every contract I prepare and the overall counsel and value I provide. Some of my recent projects include: - Negotiating & Drafting Commercial Lease Agreements - Drafting Trademark Licensing Agreements - Drafting Ambassador and Influencer Agreements - Drafting Collaboration Agreements - Drafting Service Agreements for service-providers, coaches and consultants - Drafting Master Service Agreements and SOWs - Drafting Terms of Service and Privacy Policies - Preparing policies and procedures for businesses in highly regulated industries - Drafting Employee Handbooks, Standard Operations and Procedures (SOPs) manuals, employment agreements - Creating Employer-employee infrastructure to ensure business compliance with employment and labor laws - Drafting Independent Contractor Agreements and Non-Disclosure/Non-Competition/Non-Solicitation Agreements - Conducting Federal Trademark Searches and filing trademark applications - Preparing Trademark Opinion Letters after conducting appropriate legal research - Drafting Letters of Opinion for Small Business Loans - Drafting and Responding to Cease and Desist Letters I service clients throughout the United States across a broad range of industries.

Jeremiah C. on ContractsCounsel
View Jeremiah
5.0 (47)
Member Since:
March 5, 2021

Jeremiah C.

Partner/Attorney at Law
Free Consultation
Houston
16 Yrs Experience
Licensed in NV, TX
Thomas Jefferson

Creative, results driven business & technology executive with 24 years of experience (15+ as a business/corporate lawyer). A problem solver with a passion for business, technology, and law. I bring a thorough understanding of the intersection of the law and business needs to any endeavor, having founded multiple startups myself with successful exits. I provide professional business and legal consulting. Throughout my career I've represented a number large corporations (including some of the top Fortune 500 companies) but the vast majority of my clients these days are startups and small businesses. Having represented hundreds of successful crowdfunded startups, I'm one of the most well known attorneys for startups seeking CF funds. I hold a Juris Doctor degree with a focus on Business/Corporate Law, a Master of Business Administration degree in Entrepreneurship, A Master of Education degree and dual Bachelor of Science degrees. I look forward to working with any parties that have a need for my skill sets.

Albert M. on ContractsCounsel
View Albert
5.0 (6)
Member Since:
February 8, 2021

Albert M.

Attorney
Free Consultation
Woodbury, NJ
21 Yrs Experience
Licensed in NJ
Rutgers School of Law - Camden

I am a New Jersey licensed attorney and I have been in practice for over nineteen years. My practice mainly consists of representing public entities (municipalities, school boards, etc) and businesses, both small and large. In that capacity, much of work consists of drafting, reviewing and revising contracts.

Jose P. on ContractsCounsel
View Jose
5.0 (1)
Member Since:
February 13, 2021

Jose P.

Partner
Free Consultation
San Antonio, Dallas
24 Yrs Experience
Licensed in TX
University of Pennsylvania

I am a corporate lawyer with expertise working with small businesses, venture capital and healthcare. Previously, I worked at large law firms, as well as head attorney for companies. I graduated from Harvard College and University of Pennsylvania Law School. I speak 5 languages (Spanish, French, Italian and Russian, plus English), visited over 60 countries, and used to compete in salsa dancing!

Briana C. on ContractsCounsel
View Briana
5.0 (55)
Member Since:
February 15, 2021

Briana C.

Founder, Branch Legal LLC
Free Consultation
Boston, MA
12 Yrs Experience
Licensed in CA, MA, NY
Columbia University School of Law

Legal services cost too much, and are often of low quality. I have devoted my law practice to providing the best work at the most affordable price—in everything from defending small businesses against patent trolls to advising multinational corporations on regulatory compliance to steering couples through a divorce.

Meghan P. on ContractsCounsel
View Meghan
4.8 (6)
Member Since:
February 15, 2021

Meghan P.

Attorney
Free Consultation
Denver
6 Yrs Experience
Licensed in CA
University of Dayton

I am a licensed attorney and a member of the California Bar. I graduated from the University of Dayton School of Law's Program in Law and Technology. I love IP, tech transfers, licensing, and how the internet and developing technology is changing the legal landscape. I've interned at both corporations and boutique firms, and I've taken extensive specialized classes in intellectual property and technology law.

Find the best lawyer for your project

Browse Lawyers Now

Contracts

Consignment Agreement

New York

Asked on Sep 9, 2021

How to proofread a legal document?

I’m doing a consigning agreement on a piece of art work. I’m lending it back to the private seller for 6 months. I will have a 1 page document drafted by someone who does this often(not lawyer though). Just wanted a proofread by a professional such as yourself.

Jane C.

Answered Sep 14, 2021

You can submit your request as a bid on the contracts counsel platform. My firm with many artists and art galleries.

Read 2 attorney answers>
See more legal questions…

Quick, user friendly and one of the better ways I've come across to get ahold of lawyers willing to take new clients.

View Trustpilot Review

Need help with a Consignment Agreement?

Create a free project posting
Clients Rate Lawyers 4.9 Stars
based on 11,328 reviews
Business lawyers by top cities
See All Business Lawyers
Consignment Agreement lawyers by city
See All Consignment Agreement Lawyers

ContractsCounsel User

Recent Project:
Create a consignment agreement for people consigning their goods for sale in my retail space in Ohio
Location: Ohio
Turnaround: Less than a week
Service: Drafting
Doc Type: Consignment Agreement
Number of Bids: 2
Bid Range: $995 - $1,500

ContractsCounsel User

Recent Project:
Factory Agreement - Consignee - International
Location: Nevada
Turnaround: Less than a week
Service: Drafting
Doc Type: Consignment Agreement
Number of Bids: 2
Bid Range: $750 - $1,995

Need help with a Consignment Agreement?

Create a free project posting
Clients Rate Lawyers 4.9 Stars
based on 11,328 reviews

Want to speak to someone?

Get in touch below and we will schedule a time to connect!

Request a call

Find lawyers and attorneys by city