A consignment sale contract is a legal agreement between a seller and a buyer that outlines the terms of a sale in which ownership of goods or products does not pass from the seller to the buyer until the product has been sold. It is essentially a way for sellers to reduce their business risk by allowing customers to place orders before they are obligated to make payment. This type of contract helps protect both parties’ interests while allowing buyers to buy products they may not be able to afford upfront. Most contracts will include details on when payment is due, delivery expectations, and any other contractual obligations that must be met in order for the contract to be valid.