A Consignment Agreement is an agreement between two parties, the consignor and the consignee. The consignor is the owner of goods or property who will send them to the consignee for sale. The consignee is a merchant or party that agrees to accept goods on behalf of the consignor for the purpose of selling them to customers. Both parties are then responsible for any profits generated from the sales, as well as any losses, if any. This type of contract helps to anticipate and manage potential risks, quantify expectations and obligations, and provide legal protection for both sides.