A Consignment Sales Agreement is an agreement between two parties – the provider of goods or services (the “Consignor”) and the purchaser (the “Consignee”) – for the sale of consigned items. Under a consignment sales agreement, the Consignor retains ownership of the items it has provided to the Consignee until they are sold; this ensures that the Consignor can be reimbursed for its inventory once it has been purchased by customers. The agreement also outlines how profits from the sale of the items will be split between the two parties. It’s important to draft a clear and comprehensive Consignment Sales Agreement, so that both parties fully understand their rights and responsibilities.