CONSIGNMENT
The delivery of goods to a carrier to be shipped to a designated person for sale. A BAILMENT of goods for sale.
A consignment is an arrangement resulting
from a contract in which one person, the con-
signor, either ships or entrusts goods to another,
the consignee, for sale. If the goods are trans-
ported by a carrier to the consignee, the name of
the consignor appears on the bill of lading as the
person from whom the goods have been
received for shipment. The consignee’s name
appears on it as the person to whom delivery is
to be made. The consignee acts as an agent on
behalf of the consignor, a principal, in selling the
goods and must take reasonable care of them
while in his or her possession. The consignor
does not give up ownership of the goods until
their sale.
Under the terms of the consignment con-
tract, the consignee agrees to pay the consignor
a balance of the price received for any goods
sold, which has been reduced by a fee, usually a
small percentage of the sale price. Any goods
that have not been sold must be returned to the
consignor.
CROSS-REFERENCES
Shipping Law.
