Consignment Contract Form

A consignment contract is made between someone who has something they want to sell and another person or a business who agrees to sell that item for them. In return, the person providing the item for sale promises to pay the seller a portion of the sale price or a certain amount for their service. Because this may be a legally binding contract, it's important to make sure that the terms within it are clear (such as a description of the item and the amount owed for selling it) and fair to both parties. It should be read before signing it.

What is a Consignment Contract?

A consignment contract is an agreement made between a consignee and consignor. The consignee agrees to store, transfer, or sell a particular item that belongs to the consignor. The consignee is an agent who works to sell goods to a third party on behalf of the consignor.  The typical consignment contract will include some type of sale or service fee paid to the consignee while the rest of the profits will go to the original party.

A consignment contract should be formatted similar to any legal contract.  The contract should include the information for both parties, including contact information.  Specific information about the goods should also be included, such as where the commodities will be stored, the sales price, what to do with the unsold goods, and what the consignee's fee is for each item.  Any other detail about the consignment sale and the consignee desires should be included within the contract.

The consignment contract serves to protect both parties throughout the transactions, which may be ongoing.  A good consignment agreement will also cover what to do if something goes wrong, such as a dispute resolution plan and the applicable law.  The contract should contain information about insurance coverage and which party carries the risk of loss.

Other Names

  • Agreement to Consign Goods
  • Agreement to Sell Goods on Consignment
  • Consignment Agreement
  • Consignment Agreement Form
  • Consignment Form

Legal Considerations

In the United States, Consignment Contracts are governed by Article 9 of the Uniform Commercial Code (UCC).  Consignment agreements are also subject to the governing law of the state that is specified within the agreement.

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