Legal Definitions - consignor

A consignor is an individual or entity who delivers goods to another party (known as the consignee) for a specific purpose, while typically retaining ownership of those goods until the agreed-upon purpose is fulfilled. This arrangement can apply in various situations, such as when goods are sent for sale by an intermediary, shipped through a carrier, or entrusted to another party for storage.

Here are some examples to illustrate the role of a consignor:

• Example 1: Art Gallery Sales

  An independent artist creates a series of paintings and wants to display and sell them through a local art gallery. Instead of the gallery buying the paintings outright, they agree to sell them on behalf of the artist.

  In this scenario, the artist is the consignor. They deliver their artwork to the gallery, retaining ownership of the paintings until a customer purchases them. Once a painting is sold, the gallery (the consignee) will pay the artist an agreed-upon percentage of the sale price.

• Example 2: International Shipping

  A clothing manufacturer in Vietnam receives an order for a large shipment of garments from a retail chain in the United States. The manufacturer arranges for a logistics company to transport the goods across the ocean and deliver them to the retailer's distribution center.

  Here, the clothing manufacturer is the consignor. They are the party initiating the shipment, entrusting their products to the logistics company (the carrier) for delivery to the retail chain (the consignee).

• Example 3: Specialized Storage

  A rare book collector needs to temporarily store their valuable collection in a secure, climate-controlled facility while their home undergoes extensive renovations.

  The rare book collector acts as the consignor. They are entrusting their valuable books to the specialized storage facility (the consignee) for safekeeping and preservation, maintaining ownership of the collection throughout the storage period.