Do I need a Consignment Agreement?

A Consignment Agreement sets out the terms on which a supplier (the Consignor) agrees to provide goods to another business (the Consignee) for the purposes of selling those goods. Under a Consignment Agreement, the Consignor (the supplier) will retain all ownership over the goods being provided until the Consignee sells them to customers. This means that the Consignor can demand their goods to be returned to them at any point during the commercial relationship.

Generally, under a Consignment Agreement, a Consignee will act as an Agent and may get a commission or fee for the goods they sell on behalf of the Consignor.

This Consignment Agreement contains provisions regarding:

  • details of the consigned goods, the procedure for managing delivery and stock and what happens if any product is defective;
  • the fees and payment protections;
  • the company’s obligation to sell the products and promote the interest of the consignor in good faith when marketing and promoting the products;
  • the events under which title and ownership of the products will pass;
  • the return of products not sold; and

Become a Strand Sahara member for just £35 a month to access our Consignment Agreement and many more agreements and templates for your business. Find out more here: Standard Membership

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