Consignment Agreement Definition

A good consignment treaty contains provisions for inventory control and clearly sets out the rights and obligations of both parties. Sellers who don`t have the time or desire to put their product up for sale, free themselves to fill out potential buyers` calendars, research prices, and take on the tasks of selling one item first-hand often find that consignment fees are a small price to put the work back in the hands of another. especially if they manage to negotiate low fees. A person wishing to sell an item on air delivers it to a consignment store or to a third party to make the sale on their behalf. Before the third party takes possession of the business, a revenue sharing agreement must be concluded when the business is sold. .