consignment agreements

A consignment agreement is a contractual arrangement where a seller (consignor) provides goods to another party (consignee) to sell on their behalf. The consignee agrees to sell the items and typically pays the seller only after the sale occurs, keeping a commission or fee. The seller retains ownership of the goods until they are sold, at which point payment is made. This setup helps sellers avoid upfront costs and allows consignees to expand their inventory without purchasing products directly. The agreement details responsibilities, payment terms, and procedures for unsold items or returns.