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Consignment Agreement Basics

Reviewed by Rocket Lawyer On Call Attorney Nathaniel Hammons, Esq
If you want someone to sell something on your behalf, a Consignment Agreement puts it in writing. A Consignment Agreement is a document in which one party (the "consignor") grants another party (the "consignee") the right to sell certain merchandise owned by the consignor. A Consignment Agreement is a useful way to specify how the sale of merchandise will work.

Use the Consignment Agreement document if:

  • You're in the business of selling items for others.
  • You'd like someone to sell something on your behalf.

A Consignment Agreement will outline the details, like the commission rate and the deadline for selling the item(s), and what happens if there is no sale. Usually, the consignee collects the sales price of the merchandise, keeps a percentage as a commission, and pays the balance to the consignor.The Consignment Agreement is a simple but flexible document that provides a variety of optional paragraphs. If your situation presents unusual circumstances it is advisable to consult with an attorney.

Other names for this document: Consignment Sales Agreement, Consignment Contract, Consignment Inventory Agreement

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