Consignment Terms are an agreement between a consignor, the party shipping goods to a third-party on behalf of the consignee, and the party receiving the goods. Consignment Terms specify the rights and obligations of all parties involved in the transaction, such as the ownership and risk of loss for each party. This type of contract also specifies payment terms, quantity and quality requirements, insurance responsibilities, and even who is responsible for compliance with local laws and regulations. In short, Consignment Terms protect both parties from potential losses and minimize any risks associated with the shipping or delivery of goods.