A consignment sale is a transaction in which a person (the consignor) entrusts goods to another person (the consignee) to sell on their behalf. The consignee agrees to sell the goods and remit the proceeds, minus any agreed-upon fees or commissions, to the consignor. The consignor retains ownership of the goods until they are sold, at which point the consignee is obligated to transfer the proceeds to the consignor. This type of arrangement is typically governed by a consignment agreement, which outlines the terms and conditions of the sale, including the responsibilities of both parties and the distribution of proceeds.
A consignment sale is a type of transaction where a person (consignor) entrusts their goods to another person (consignee) to sell on their behalf. The consignee receives a percentage of the sale price as a commission.
Yes, a consignment sale is a legally binding agreement between the consignor and the consignee. Both parties have certain rights and obligations that are enforceable under contract law.
The consignor is responsible for providing accurate information about the goods, ensuring they are in good condition, and setting a reasonable selling price. They also have the right to terminate the consignment agreement if necessary.
The consignee is responsible for promoting and selling the consigned goods, maintaining accurate records of sales, and providing regular updates and payments to the consignor. They must also exercise reasonable care in handling and storing the goods.
No, the consignee cannot sell the consigned goods at a lower price without the consignor’s consent. The consignee must adhere to the agreed-upon selling price unless otherwise specified in the consignment agreement.
The consignee is generally responsible for any damage or loss that occurs to the consigned goods while in their possession. However, the consignment agreement may specify the extent of liability and any insurance coverage in place.
The consignee is typically compensated through a commission, which is a percentage of the sale price. The specific commission rate is usually agreed upon in the consignment agreement.
Yes, the consignor can set a minimum selling price for their goods. This ensures that the consignee does not sell the goods below a certain price without the consignor’s approval.
If the consignee fails to pay the consignor for the sold goods, the consignor may have legal recourse to recover the unpaid amount. This may involve taking legal action or seeking mediation, depending on the jurisdiction and the terms of the consignment agreement.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 5th April 2024.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
- Page URL:https://dlssolicitors.com/define/consignment-sale/
- Modern Language Association (MLA):Consignment Sale. dlssolicitors.com. DLS Solicitors. May 09 2024 https://dlssolicitors.com/define/consignment-sale/.
- Chicago Manual of Style (CMS):Consignment Sale. dlssolicitors.com. DLS Solicitors. https://dlssolicitors.com/define/consignment-sale/ (accessed: May 09 2024).
- American Psychological Association (APA):Consignment Sale. dlssolicitors.com. Retrieved May 09 2024, from dlssolicitors.com website: https://dlssolicitors.com/define/consignment-sale/
Our team of professionals are based in Alderley Edge, Cheshire. We offer clear, specialist legal advice in all matters relating to Family Law, Wills, Trusts, Probate, Lasting Power of Attorney and Court of Protection.
All author posts