Consignations

Consignations, or consignments, refer to the act of entrusting goods, money, or other property to another party for a defined purpose, with ownership often remaining with the consignor until certain conditions are met. The term derives from Latin consignare, to commit or entrust.

In commerce, a consignment is a sales arrangement in which a supplier (the consignor) ships goods to a retailer or agent (the consignee) who agrees to sell them on the consignor's behalf. The consignor typically retains title and bears risk of loss until a sale occurs. Payment to the consignor is usually made after sale, with unsold goods often returned or disposed of according to contract. This arrangement reduces the buyer's risk and allows the retailer to expand its assortment without upfront purchases, but it places inventory and credit risk on the consignor.

In logistics and shipping, consigning can also refer to delivering goods to a carrier for transport or to a warehouse for storage, with the understanding that ownership may not transfer until delivery or payment.

In civil law traditions, consignation is a formal process in which a debtor deposits money or property with a court or custodian to extinguish an obligation when the creditor is absent or disputes payment. The debtor must generally prove attempts to reach the creditor and comply with local rules; the deposited value may become due to the creditor after legal adjudication or release.

Notable related terms include consignor, consignee, and consignor agreement. Consignations contrast with outright sales, where title passes at the time of transfer.