Consignment Agreement

This Consignment Agreement is a legal document for a consignor to appoint a consignee for the sale of goods.

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Last updated January 14, 2025

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Suitable for Australia

Consignment Agreement

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What is a consignment agreement?

A consignment agreement is a legal contract where one party (the consignor) gives goods to another party (the consignee) to sell on their behalf, while the consignor retains ownership until the goods are sold.
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When should you use a consignment agreement?

You should use a consignment agreement when you want someone else to sell goods for you, but you wish to retain ownership of the goods until they are sold to a customer.
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What should be in a consignment agreement?

A consignment agreement should include details about the goods, terms of sale, ownership and risk, obligations of both parties, and procedures for unsold goods and reporting sales.
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Frequently asked questions

What protections does this agreement offer the consignor?

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Does the consignee ever own the goods?

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What risks does the consignee take on?

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Can any type of goods be sold under this agreement?

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What are the key obligations of the consignee?

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How does registration under the PPSA work?

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What steps should both parties take to finalise the agreement?

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View Sample Consignment Agreement

Consignment Agreement
risk level indicator at Low level

The Legal Risk Score of a Consignment Agreement Template is Low

Our legal team have marked this document as low risk considering:

  • The consignee bears the risk of any loss or damage to the goods once they are delivered, which could lead to financial liability if the goods are damaged or lost before they can be sold or returned.
  • The title of the goods remains with the seller until specific conditions are met, making the consignee responsible for the goods without owning them, which can complicate matters if there are issues with the goods or their sale.
  • The consignee is restricted from modifying, misrepresenting, or dealing with the goods in ways not stipulated by the agreement, limiting flexibility in handling the goods which could affect operational strategies.

Meet Our Users

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