The Agreement Components

    • The Parties Involved
    • Responsibilities and Duties
    • Contract Duration
    • The Consignments
    • View consignment software features -->

The Consignor and the Consignee

The consignor is the owner of the consignment(s) (the property to be delivered or sold). The consignee is the entity tasked with delivering or selling the merchandise.


Ownership of the goods remains with the consignor and is not included in the assets of the consignee. When a consignment business is sold, consignments cannot be included as assets of the business.


An agreement may include an itemization of items placed on consignment.


The consignor must legally own (or have legal custody of) the property consigned.

The consignee is entrusted with the possession, delivery and/or sale of the consigned valuables and must care for and protect the commodities for the duration of the contract.

The risk of loss is assigned in the agreement as well as the consequences in the event of loss (theft, acts of God, damage, etc).

The burden of expenses can be assigned.


Typically the consignor must deliver the consigned goods to the consignee.

The consignee is charged with transferring or selling the consignments and taking reasonable measures to succeed.


An agreement is dated as of the date the relationship is established. It defines the duration of the relationship and what is to be done with merchandise that remains in the consignee's possession upon expiration of the holding period.

It is common for consignment stores to return unsold materials to owners. Other options included donation to another party, destruction or transfer to shop ownership.