Legal Definitions - consign

To consign means to entrust goods or property to another party for a specific purpose, such as sale, shipment, or storage. In these arrangements, the original owner (known as the consignor) typically retains ownership of the goods until the agreed-upon purpose is fulfilled, while the party receiving the goods (the consignee) takes on the responsibility for their care and handling.

This term is commonly used in several contexts:

• For Sale: When an owner gives goods to a retailer or agent to sell on their behalf. The retailer sells the items and then pays the original owner a portion of the sale price, often a percentage or a fixed amount, keeping the remainder as their commission. The original owner still legally owns the goods until they are sold to a third party.

  Example: A local artist creates unique ceramic pottery and wants to sell it without managing her own storefront. She consigns her pottery to a small boutique shop in town. The boutique displays and sells the pottery, and once a piece is sold, the boutique pays the artist a pre-agreed percentage of the sale price. Until a piece is purchased by a customer, the artist remains its legal owner.

  Explanation: The artist is the consignor, entrusting her goods (pottery) to the boutique (consignee) for the purpose of sale. The artist retains ownership until a customer buys the pottery, and the boutique handles the sale and payment process.

• For Shipment or Delivery: When someone hands over goods to a carrier (like a shipping company) to transport them to a designated recipient.

  Example: An online bookstore receives an order for a set of textbooks. The bookstore packages the books and consigns them to a national courier service for delivery to the customer's address across the country.

  Explanation: The online bookstore is the consignor, entrusting the books to the courier service (the carrier/consignee) for the specific purpose of delivery to the customer (the ultimate recipient). The act of handing over the package to the courier is consigning it for shipment.

• For Storage: When an owner places goods into the care of another party for safekeeping in a warehouse or storage facility.

  Example: A family is moving overseas for two years and needs to store their furniture and household items. They consign all their belongings to a professional storage company, which provides a secure, climate-controlled unit for the duration of their absence.

  Explanation: The family is the consignor, entrusting their household items to the storage company (consignee) for the purpose of secure storage. The storage company takes custody and responsibility for the items while the family retains ownership.