oboloo Glossary

Consignment Contract

oboloo Glossary

Consignment Contract

A consignment contract is an agreement between two parties where one party agrees to let the other use their goods for a certain period of time. This type of contract benefits both parties; on one hand, the person or business offering the goods will receive payment when the goods are sold, but they don’t have to handle the sale themselves. On the other hand, the person or business taking the goods will be able to sell the goods without having to pay for them upfront. It’s important for both parties to carefully review and understand all the terms and conditions of a consignment contract to make sure that everybody involved is well-protected and happy with the agreement.